DataVerify Launches New Products to Eliminate Short Sale and Overvaluation Fraud
ST. LOUIS, Sept. 20 /PRNewswire/ -- DataVerify has enhanced its enterprise-wide fraud management platform, DRIVE (Data Risk Intelligent Verification Engine) to help mortgage lenders identify and avoid potential short sale and property flipping losses.
As the housing industry continues to struggle, short sales have become more commonplace. A homeowner sells his property for less than the outstanding balance on the mortgage, to avoid foreclosure and to permit the lender to receive some return on the investment. At the same time, property flipping cases have also been accelerating, primarily as a result of depreciating property values. Flipping occurs when a property owner purchases a property and resells it within a short period of time at a significant increase.
"Our customers tell us these new tools are working and the reason why they work is because we apply what we learn from our customers' own experiences," said Steve Halper, president of DataVerify. "In reviewing customer transactions, we discovered that:
- 7% of the properties are valued under current market value for other similar comparable properties.
- 3% involve transactions in which the borrower is in the real estate or mortgage industry and did not disclose that fact.
- 4% involve transactions in which the borrower has undisclosed self-employment.
- 4% involve transactions in areas with very high rates of property flipping activity.
- 4% contain IRS-validated tax transcript income variances of greater than 20%."
"We used this type of information to create additional tools customer can use to predict these unique risks associated with short sales," Halper said.
Like short sales, transactions related to property flipping continue to remain a concern to lenders. In the short term, a property appreciates because the owner has refurbished it. To assist mortgage lenders in determining whether the owners made true improvements or merely cosmetic, but structurally unsound improvements, DataVerify has incorporated a national building permit dataset into DRIVE. Currently containing 88 million permits on properties in more than 4,000 cities in the U.S., this data will allow lenders to greatly reduce the amount of time and resources spent manually calling individual building departments to request permit data on a specific property.
"The new short sale and property flipping fraud detection capabilities from DataVerify meet and exceed all stated industry needs today," said Halper.
To learn more, contact DataVerify at 866-895-3282.
About DataVerify
DataVerify is a leading provider of fraud prevention and decision management solutions for the mortgage industry. First to market with such impactful fraud prevention tools as: real time payroll registry verification, automated salary verification, and undisclosed real estate and businesses, DataVerify continues to lead in the development of unique new solutions to the ever changing landscape of fraud and credit risks in today's mortgage environment. For more information about DataVerify, call 866-895-3282 or visit the company online at www.dataverify.com.
Contact: |
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Dan Studeny |
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CBCInnovis |
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412-503-9629 |
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daniel.studeny@dataverify.com |
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SOURCE DataVerify
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