CoreLogic is allowing lenders and credit grantors a free 30-day trial to use its IncomeAdvisor tool that detects income fraud during the origination process.
According to CoreLogic data, income fraud accounts for 23% of mortgage fraud.
IncomeAdvisor, which was developed in December 2010, provides a real-time assessment of income reasonability at the individual borrower level, which helps reduce income fraud and permits more efficient income verification strategies.
Supported by CoreLogic’s fraud database that contains over 90 million loans and analytical models that determines income percentiles for borrower information, IncomeAdvisor delivers both a fraud score and actionable alerts as well as an income estimation at a confident level for its clients to make better decisions.
For every IncomeAdvisor report conducted, clients know whether the overall income risk assessment for a borrower is “high,” “medium” or “low,” based on a model fraud risk evaluation. There is also a score displayed in the report ranging from 1-999 that predicts the likelihood that the income provided by the borrower is incorrect.
The tool also helps businesses comply with federal mandates requiring lenders to validate borrowers’ ability to pay based on verifiable income and asset information.
By using IncomeAdvisor, businesses that rely upon income validation to approve loan applications have the ability to assess claimed income reasonableness—even on borrowers with minimal or no credit histories—detect deviations between borrower reported income and the monthly income estimate, validate the accuracy of tax return information, assist lenders in approving more customers, customize risk and confidence thresholds, and determine specific areas for investigation and verification based on easy-to-use alerts.
The Santa-Ana, Calif.-based company said it is offering the free trial for businesses to test for themselves how a real-time income estimation can detect income fraud.
“In our work with lenders across various lines of business, it is clear that income misrepresentation is a common and growing problem,” said Tim Grace, senior vice president of product management and analytics at CoreLogic. “IncomeAdvisor can help lenders minimize this risk by determining whether the income stated on an application is reasonable. The 30-day, no-cost trial let’s lenders test for themselves the accuracy and savings they can realize with real-time income estimation and fraud assessment.”
Businesses that are interested in this tool have to contact CoreLogic by May 11. A maximum of 15,000 loan applications for every organization will be processed during the trial period.
