Technology helps sniff out real estate fraud

March 28, 2005

First American Real Estate launches Web-based LoanIQ

Inman News

First American Real Estate Solutions today released LoanIQ, a Web-based loan quality analysis and fraud detection product that uses technology to identify market risk and collateral valuation fraud for one loan or thousands.

LoanIQ evaluates the subject property and instantly provides an assessment of collateral valuation risk and market volatility, enabling lenders to expedite quality loan files while quickly and accurately identifying loans with a higher risk of loss.

In prefunding settings, LoanIQ provides an instant score that helps lenders decide whether to fund a loan and determine if an automated valuation model (AVM) is an appropriate choice for collateral valuation purposes. In post funding, quality control and due diligence, analysts can access LoanIQ's aerial photos and price appreciation graphs that help them gain insight into loans of questionable quality.

Built on a predictive modeling method known as logistic regression analysis, LoanIQ's statistical model is trained on a database that includes loans of varying quality-good loans, early default loans and known fraudulent loans. This allows LoanIQ to evaluate files using more predictors of loan quality than any other product on the market.

LoanIQ is designed to work within existing loan origination systems and processes, allowing immediate implementation. Delivery options include a browser-based application, direct system integration through an XML-based connection, or via a batch-file processing approach whereby LoanIQ results are appended to client-provided loan files.

First American Real Estate Solutions, a member of The First American Family of Companies, provides advanced property and ownership information, analytics and services. The company's database covers more than 2,300 counties representing 97 percent of the nation's real estate transactions.

Copyright 2005 Inman News

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