Due Diligence Solutions
A Proven Process
Our Due Diligence process—shown here—is logical, transparent, easily adapted to your needs, and responsive to changing circumstances.
Our due diligence professionals have operated successfully for more than a decade, uncovering the true levels of risk inherent in mortgage and security assets—in many economic environments and market conditions. Our approach has always been simple, clear, transparent—and effective.
Working with BRAIN®5—our industry-standard due diligence platform—our New Diligence professionals utilize their extensive underwriting experience and proven expertise in using our full range of data and analytics tools to provide you with pool- and anonymized loan-level results that are not only fast and accurate, but contextualized, deeply detailed, and directly actionable.
Focused on creating insights directly relevant to current market conditions, our expanded New Diligence solutions integrate industry-leading data, multi-level analytics, and unrivaled expertise to evaluate your current levels of risk—credit, compliance, collateral, fraud—and produce the facts and insights you need to make decisions with confidence.
Although our New Diligence services are fully customizable to fit your exact needs—no matter what they are—we have historically focused on the following mortgage-related markets:
- Investment (Banks, Hedge Funds, Investors)
- Finance (Originators, Lenders, Servicers)
- Insurance (Insurers, LCDS Counterparties)
- Regulation (GSEs, Federal Agencies, State Bureaus)
Our New Diligence experts utilize, as needed, a number of highly specialized applications and technologies that use industry-leading CoreLogic data to create efficient, tailored, cost-effective solutions for you—with minimal timing delays. Alone or together, they automate many stages of our due diligence process:
The leading mortgage-risk analysis tool, LoanSafe rates loan-level portfolio risk multi-dimensionally—scoring loans for collateral, borrower, and broker risk
To assess the current influence of HELOCs and other active seconds on portfolio value, TrueLTV uncovers all details, summarizes likely ongoing impacts
- GeoAVM™ Cascade Suite
By simultaneously examining potential factors that may include geography, price tier, property type, subject property factors and other variables, GeoAVM reduces the time and money spent on more traditional valuation processes
- GeoAVM Distressed™
Ideal for early, repeat, and volume valuations, GeoAVM Distressed automate quick, low-cost, current or retrospective distressed-asset valuations
An expert-systems technology, ComplianceEase automates up-to-the-minute, transaction-level, multi-jurisdictional portfolio compliance reviews
- CoreLogic Credco
A leading U.S. credit repository, CoreLogic Credco provides instant credit assessment capabilities to portfolio risk-management and auditing applications
- Credit Underwriting
Our credit underwriting due diligence teams are led by experienced deal managers, with each team including a lead underwriter to manage the process, a quality control underwriter to ensure data consistency, and credit underwriters who individually focus on verifying documentation, performing credit analyses, confirming data accuracy, and assuring regulatory compliance.
- Instant Merge
A “soft-inquiry” merged-credit-reporting solution, Instant Merge combines credit data from one, two, or all three national credit bureaus into a single report in a common format. By providing an accurate representation of your borrower’s credit history using only the most up-to-date credit information, Instant Merge performs quick, comprehensive borrower due diligence.
- Rapid Recheck
Rapid ReCheck speeds up bureau-level credit updating of national repository records—including FICO scores—so you can quickly verify or amend credit scores during the due diligence process. Since Rapid Recheck recalculates key scores using the latest credit bureau information updates, it can be used to isolate the impact of borrower credit on portfolio performance metrics.
- Account Monitoring
Our credit risk monitoring service improves the performance of securities by tracking deal performance over time, identifying issues, and resolving problems. We examine prepayments, delinquencies, roll rates, cure/resolution rates, defaults, losses, and value volatility, identifying what’s worked to improve value in the past and what can be improved in the future.
- Portfolio Credit Review
The Portfolio Credit Review (PCR) provides a complete credit overview of your portfolio, including credit score ranges, average scores, and percentages of borrowers in certain score ranges. PCR showcases only essential data, speeding portfolio value determinations for acquisition, sale, or investment. Based on real-time data and analytics, PCR uses only the most current information.
- Credit Fraud Detection/Deterrence
Credit fraud services can determine a loan portfolio’s level of credit risk, analyzing borrower data enhanced for credit status (accounts, balances, payment status) then flagging loans when that and other monitored data passes client-set threshold levels for ownership changes, property flips, payments, identity, PATRIOT Act and OFAC restrictions, domestic and international watch lists.
- Portfolio Evaluation Review
Our portfolio evaluations of internal assets or potential acquisition targets use a comprehensive, tailored, holistic toolset—services and software custom- allocated to include only what you actually need—speeding the process by automating as much as possible. In less than 24 hours, our portfolio audits can shrink costs by reducing BPOs and clarifying “buy/no-buy” decisions.
- Open Lien/Current LTV Review
Using BRAIN technology and TrueLTV, we focus assessment of your portfolio on the impact of secondary liens on loan-level and overall values—updating risk levels by including current lien counts/amounts, lien positions in repayment order, estimates of collateral market values, equity balances and CLTVs, ARM terms/interest rates, pre-foreclosure or foreclosure activities.
- Scratch & Dent Review
One of the most inviting acquisition targets in the current mortgage marketplace, scratch & dent loan portfolios offer significant profit opportunities. Our uniquely fast, focused portfolio reviews of distressed, delinquent, and poorly written loans are designed to give buyers current risk/value assessments that are comprehensive and timely enough to provide real competitive edge.
- Non-Performing/REO Asset Review
Our non-performing/REO asset reviews are the flip side of scratch & dent reviews (see above): a fast, accurate way for banks and other asset sellers to assess current risk/value in distressed loan portfolios—then, continuing an automated audit process over time, regularly updating the data to help overcome current investor perceptions of uncertainty in bank-asset valuations.
- Fraud Detection and Deterrence
As widespread as mortgage fraud was suspected to be prior to the current financial meltdown, it is proving in fact to be far worse. Using BRAIN technology and LoanSafe—our proven, industry-leading fraud discovery and deterrence tool—we audit your portfolio for fraud-risk indicators (borrowers, agents, geography, appraisals, pricing, market conditions, EPD/loss severity, etc.).
- Collateral Risk Management
After initially determining a pool or portfolio’s collateral mark-to-market value, we can automate a long-term, iterative collateral performance audit. Our risk management tools stratify collateral into risk gradients, identifying any that have fallen below defined thresholds for corrective attention. Since we audit complete loan pools, not just sample loans, we never miss the bad apples.
- Regulatory Compliance Review
We use ComplianceEase to determine quickly if loans in your portfolio meet requirements of Fannie Mae, Freddie Mac, Ginnie Mae, FHA, VA, FHLB, secondary market investors, and regulators. ComplianceEase can be customized to fit your evolving needs, including third-party origination risk analysis and review of your policies, procedures, and controls.
- Predatory Lending Compliance
The proliferation of high-cost anti-predatory laws and ever-changing state consumer lending regulations have shifted much regulatory compliance from traditional sampling and manual reviews to an automated, transaction-level approach. Our ComplianceAnalyzer® automates assessment of your portfolio’s loan-level PL compliance and generates detailed reports—all in just seconds.
- GSE Compliance Review
ComplianceEase GSE compliance reviews include up-to-the-minute regulatory updates—like the Home Valuation Protection Program recently established by Fannie Mae, Freddie Mac, and the Office of Federal Housing Enterprise Oversight (OFHEO), which mandates significant changes to the real estate appraisal process, including appraisal compliance with regulatory standards.
- HUD/Patriot Act/OFAC Compliance
CoreLogic CREDCO’s ProScan OFAC Compliance tool automatically checks all borrowers in a portfolio to ensure that none has been identified as taking part in terrorist financing. Quickly and automatically, it provides documentation showing compliance with the USA PATRIOT Act’s Customer Identification Program (CIP) and the Office of Foreign Assets Control (OFAC) rules.
- Red Flags Compliance
CoreLogic CREDCO’s Red Flags Compliance is designed to help U.S. lenders and brokers comply with the Red Flags Rule, the FTC’s new regulation requiring finance and credit institutions to develop programs to combat identity theft. Our compliance solution combines fraud analysis, identity verification, and Fair and Accurate Credit Transactions (FACT) Act fraud alerts.
- Legal and Quality Control Review
Using quality-focused BRAIN QC automation, our legal and quality portfolio reviews quickly identify collateral compliance with federal, state, county, and municipal regulations, statutes, and ordinances—including all the latest legislative and regulatory updates—plus relevant GSE and rating agency standards, current market practices, and internal company guidelines.