Real estate fraud risk tool adds muscle
C&S; Marketing launches upgrade to HistoryPro for mortgage industry

Monday, May 02, 2005


Inman News

C&S; Marketing today unveiled an upgrade of HistoryPro, its collateral risk scoring tool for the mortgage industry, enabling faster processing through a simplified report interface, faster query response times and a richer base data set.

"Fraud is on the rise, and its prevention is critical to the mortgage lending industry. Lenders must protect themselves by reconfirming a property’s collateral value and its risk potential. Early detection is the key," said Steve Schroeder, CEO and co-founder of C&S; Marketing.

In determining fraud, HistoryPro evaluates numerous elements to determine a loan's F-score, including the relationship between foreclosures and price appreciation, the subject property sales price relative to the current appraisal or origination estimate, the origination value relative to the market, prior foreclosure on the subject property and geographic conditions surrounding the subject property. In addition, HistoryPro references foreclosure and volatility models as well as overall performance studies.

HistoryPro also includes subject property history detail, nearby property sales information, market data and a buyers and sellers transaction summary. These features are combined with other analytical metrics to create an easy to use, information rich decision dashboard that uniquely equips lenders to more clearly identify and control collateral risk.

By showing the likelihood of foreclosure for a property in a statistical score, HistoryPro allows lenders to save millions each year. C&S; Marketing recently conducted an analysis of 600,000 loan originations using subject address and property value, exposing 20 percent of properties in a single area involved in loan fraud, then predicting 12-month loss estimates. The study also identified fraud rings, pinpointing where to tighten controls on third-party sellers.

HistoryPro evaluates approximately 45,000 loans per day and is used by nine of the top 10 U.S. lenders, according to the company.

Sacramento, Calif.-based C&S; Marketing is a provider of collateral risk assessment and fraud prevention software and products for the mortgage industry.

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Copyright 2005 Inman News


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