Analyzing Mortgage Risk

C&S Marketing is offering a product named LoanSafe that allows residential mortgage originators and secondary investors to assess the risk value and fraud potential in a loan transaction. The tool not only analyzes the borrower's financial picture, it also looks at the agent and the collateral itself, presenting the user with an overall risk score based on data from those three sources.

The product comes at a time when the FBI is reporting high rates of mortgage fraud. The agency's May 2005 financial crimes report said that mortgage fraud reports have risen 150 percent since 2003.

LoanSafe looks at property being sold, its market, borrower financial and behavioral patterns and the quality and risk value of agents. According to the company, the tool will allow 70 percent of all loans processed through it to be streamlined through the loan approval process.

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 9, 9/05