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CoreLogic unveils IncomePro to combat stated-income fraud.

Sacramento, California-based CoreLogic Systems Inc. announced it has developed IncomePro[TM], an automated validation tool designed to provide lenders with a fast and effective way to establish the soundness of a borrower's income.

Over the last several years, stated-income and no-income verification products have gained prominence in the mortgage marketplace, while the number of reports about significantly exaggerated borrower incomes for these products is on the rise.

IncomePro was developed in response to an increasing mortgage industry fraud trend, according to Anthony Romano, executive vice president of CoreLogic.

"Industry analysis suggests up to 90 percent of stated incomes are exaggerated by 5 percent or more, and that 60 percent of stated incomes are inflated by more than 50 percent," said Romano. "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 Seattle-based PayScale Inc. and CoreLogic's advanced analytical algorithms, to instantly deliver an accurate, easy-to-interpret, content-rich income profile of the borrower. These reports provide detailed information on each borrower, including employer and personal information verification, comparative occupational pay scales and an overall income risk assessment, explained Romano.

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, said Romano.

"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-through rates and reduces potential loan loss by providing the necessary advice to proceed with confidence."
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Title Annotation:TechNewz; CoreLogic Systems Inc.
Publication:Mortgage Banking
Date:Nov 1, 2006
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