CoreLogic Credco Introduces GSE-Compliant, Fully Automated Suite of Prefunding Products for Lenders
Email Dan Smith
December 01, 2010, Santa Ana, Calif. –
—FinalCheck Mitigates Loan Buyback Risk by Instantly Verifying Loan Credit, Application and Fraud Data at Prefunding—
CoreLogic Credco, the nation’s leading provider of merged credit reporting solutions to the mortgage industry and a division of CoreLogic (NYSE: CLGX), a leading provider of consumer, financial and property information, analytics and services, today announced the introduction of FinalCheck, an automated, fully decisionable suite of prefunding risk evaluation products that instantly verify credit, application and fraud data in an easy-to-read report. FinalCheck is designed to help lenders satisfy government sponsored entity (GSE) requirements, reduce repurchase risk and increase loan delivery confidence.
The FinalCheck suite consists of three critical data verification products: CreditCheck, AppCheck and FraudCheck. CreditCheck performs a “gap” analysis on credit information between pre-approval and prefunding; AppCheck searches against proprietary CoreLogic loan application databases and the Mortgage Electronic Registration System (MERS) for undisclosed loans; and FraudCheck verifies that neither the borrower or loan participants are on a Department of Housing and Urban Development (HUD) or other investor exclusionary list. The result is a powerful set of reporting tools that provide lenders critical insight on any potential prefunding risk indicators before submitting the loan to the GSE.
“According to the Mortgage Bankers Association’s 2011 origination forecasts, we estimate that 672,000 applicants will have their debt-to-income increase by more than three percent between pre-qualification and pre-funding, making those loans a candidate for rejection or a buyback,” said John Bauer, senior vice president of Credit and Transportation Services for CoreLogic Credco. “Additionally, 765,000 loan applicants will have a debt-to-income (DTI) that exceeds 45 percent at pre-funding, putting those loans at risk as well. The FinalCheck suite of products plays a critical, proactive role in monitoring debt-to-income ratios and other loan risk factors that could surface just prior to loan submission.”
The FinalCheck suite of products is powered by nd Merge, the Credco proprietary merge technology platform that powers ENCORE and other advanced data reporting solutions for the mortgage industry. Nd Merge technology allows the FinalCheck products to quickly collect, combine and organize diverse and powerful data risk factors into an easy-to-interpret reporting format. Generated in seconds, FinalCheck allows mortgage professionals to make fast, reliable lending decisions at prefunding to help them ensure the integrity of the loan prior to GSE submission and avoid loan buy-backs.
“The introduction of the FinalCheck suite is in direct response to recent changes in GSE prefunding requirements,” continued Bauer. “As new industry requirements arise, we will continue to develop and add new products to the FinalCheck suite to help lenders minimize prefunding risk and deliver quality mortgage loans.”
CoreLogic Credco provides one out of every two credit reports to the mortgage industry. For more information about CoreLogic Credco FinalCheck, visit www.credco.com/FinalCheck or call (800) 255-0792.
About CoreLogic Credco
Tracing its history over 50 years, CoreLogic Credco is the nation’s number one provider of merged and specialized credit reports, processing over 90 million credit and related transactions annually. With access to one of the nation’s largest consumer and business databases, CoreLogic Credco leads the mortgage; automotive; bankruptcy; merchant services; recreational vehicle; marine and other specialty credit and retail markets with a broad range of advanced business information solutions designed to reduce risk and improve business performance. For more information visit www.credco.com.
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the information solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010.
The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of $2 billion. For more information visit www.corelogic.com.
CoreLogic and Credco are both registered trademarks of CoreLogic. Nd Merge, ENCORE, FinalCheck, CreditCheck, AppCheck and FraudCheck are trademarks of CoreLogic.