PRESS RELEASE


Stated Income Fraud Solution

Automated Validation Tool Establishes Soundness of Borrower's Income

SACRAMENTO, Calif.-- (Oct. 17, 2006) CoreLogic, (www.corelogic.com) the leading provider of mortgage risk assessment and fraud prevention solutions, has developed IncomePro in response to an increasing mortgage industry fraud trend. Over the last several years, stated and no-income products have gained prominence in the mortgage marketplace. At the same time, the number of reports about significantly exaggerated borrower incomes for these products is on the rise. IncomePro, the industry's first fully automated income validation tool, provides lenders with a fast and effective way to establish the soundness of a borrower's income.

"Industry analysis suggests up to 90 percent of stated incomes are exaggerated by five percent or more, and that 60 percent of stated incomes are inflated by more than 50 percent," said Anthony Romano, executive vice president of CoreLogic. "IncomePro removes the guesswork from the evaluation of a potentially high-risk stated income loan, enabling lenders to more carefully consider the validity of self-reported income."

IncomePro draws on multiple databases, including PayScale, and CoreLogic's advanced analytical algorithms, to instantly deliver an accurate, easy to interpret, content-rich income profile of the borrower. These reports identify potentially significant exceptions that are instrumental to the evaluation of each opportunity and addressing suspect stated income information without jeopardizing the loan. The reports provide detailed information on each borrower, including employer and personal information verification, comparative occupational pay scales, and an overall income risk assessment.

IncomePro analyzes the rational progression of an individual's salary, taking into account a borrower's pattern of employment and occupation to determine predictable salary growth and establish potential ability to pay.

"These risk summary assessments enable the rapid determination of how to proceed with each loan," said Romano. "Whether the decision is to streamline the loan, offer an alternative product, expand due-diligence, or proceed with an investigation, IncomePro improves workflow, increases pull-thru rates, and reduces potential loan loss by providing the necessary advice to proceed with confidence."

SOURCE: CoreLogic