SACRAMENTO, Calif--(Feb. 8, 2007)--CoreLogic:
Who: Anthony Romano, executive vice president for CoreLogic
is a mortgage risk management and fraud prevention expert.
Romano consults and implements fraud prevention strategies
for lenders and secondary market investors nationwide.
What: The secondary market is alarmed about income pushing and
misrepresentation on stated income loan products that lead to
poor loan performance. The bottom line is the proliferation of
alternative loan products is having dramatic impacts on the
industry. Romano has seen five of the top 30 sub-prime lenders
in the last two months stop originating loans due to severe
losses from loan repurchases. In the last three months the
OCC, OTS and many rating agencies have issued guidance on
underwriting practices for non-traditional and low doc loan
products. The guidance includes a much more comprehensive and
reliable process around income validation.
This state of the mortgage industry is leading lenders to
focus on one area: repayment capacity. Anthony Romano offers
commentary on this issue and answers the following questions:
- What is "risk layering" and why has it increased in the
last five years?
- Without asking for more borrower documentation, what are
lenders' choices for salary validation and what are the
- What new tools are available for lenders to validate truth
- What steps do lenders need to ensure better reasonableness
checks and reduce fraud with stated income loans?
- Ensuring "repayment capacity" is critical for success in
today's lending environment; what should lenders look for
when choosing a technology solution?
When: Romano is available immediately. Please contact Meredith Boyd
to schedule an interview.