CoreLogic Launches Condominium Project Eligibility Solution
Real Estate Industry and Trade Media
Campbell Lewis Communications
Email Media Contact
October 01, 2014, Irvine, Calif. –
—CondoSafe Streamlines Mortgage Underwriting and Review Processes—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today announced the launch of CondoSafe™, the first nationwide data enabled solution that helps lenders and investors determine whether individual condominium projects meet investor eligibility guidelines, enabling lenders to improve the efficiency and effectiveness of condominium project review.
Designed to become an industry-wide utility, CondoSafe solicits and stores information from more than 140,000 condominium associations (COAs) in the U.S., to determine whether a specific condominium project appears to be eligible for GSE and investor lending. During development, CoreLogic worked closely with leading lenders, U.S. housing agencies and condominium industry groups to create the first standardized, copyrighted COA questionnaire that meets the needs of most lending institutions.
Based on the submission of a condo unit-specific address by the lender, CondoSafe will link that address to the correct COA, using sophisticated data technology and query the association on the lender’s behalf. The lender will be provided an underwriter-friendly report, as well as any requested association and insurance documents. Lenders and investors may use this information to assist in making lending decisions and to perform quality control reviews on condo transactions delivered by third party originators. The report will include “alerts” based on all applicable agency condominium guidelines that will help users to identify potential eligibility issues, such as owner occupancy, commercial/residential mix or loan performance.
The full CondoSafe review package will include:
- CondoSafe Report
- Insurance Declarations
- Covenants, Conditions and Restrictions
“Today, lenders that originate conforming loans for condos must first identify and then contact and query COAs to determine eligibility,” said Arlene Hyde, senior vice president, client experience at CoreLogic. “This can be a time-consuming ‘chase and place’ process that can easily stretch-out underwriting and purchase decisions by weeks and add $500 or $600 to the cost of origination. If the information they receive back is inaccurate or misinterpreted, it can result in a loan being ineligible for GSE or investor purchase.”
Hyde added: “The idea for CondoSafe came from our clients who were frustrated by the inefficiencies, redundancies and risks in the project approval process. Our standardized questionnaire will make it easier for COAs to provide information and for underwriters and investors to review it. We have already identified more than 75 percent of all COAs, beginning with those that have the highest level of lending activity. CoreLogic will proactively update the condo project data sets and documents for the associations with the highest activity. Information on less active COAs will be delivered on-demand based on agreed upon timelines.”
Initially, CondoSafe will provide alerts based on apparent conflicts with investor guidelines. Future iterations will also compare COA-provided data to historical statements and validate the data against other CoreLogic databases, such as loan performance and MLS data, to alert clients to potential discrepancies.
CoreLogic will offer demonstrations of the solution to attendees of the MBA Annual Conference, being held October 19-22, 2014, in Las Vegas, Nevada.
CoreLogic (NYSE: CLGX) is a leading property information, analytics and services provider in the United States and Australia. The company’s combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, please visit www.corelogic.com.
CoreLogic and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.