FAQs About LoanSafe™

LoanSafe is a comprehensive risk management and fraud prevention solution designed for the mortgage industry.

Lenders, aggregators, loan fulfillment personnel, operations managers, and fraud/credit/QC risk teams are the primary users.

LoanSafe is designed to support residential mortgages.

LoanSafe combats challenges such as managing high false positives.

Consortium data enhances the predictive scoring mechanism by incorporating diverse industry insights into risk evaluation.

LoanSafe offers a white list option and watch list tools designed to reduce repetitive false positive hits and operational inefficiencies.

Yes, customizable features include self-service alert settings and adjustable report formats.

It streamlines alert management and reduces the need for additional resources through features like self-service alert settings and the LoanSafe Connect tool.

LoanSafe minimizes costs associated with managing false positives and improves loan processing times.

Yes, LoanSafe includes compliance-focused features like self-service administration for setting alert visibility, a watchlist, and comprehensive reporting tools.

Loans can be processed and approved more rapidly by efficiently managing risks and maintaining regulatory compliance.

With a user-friendly interface and navigable reports, new users can easily adapt to using LoanSafe.

For Technical issues with your LoanSafe order (issues related to the product performance or LoanSafe data errors) contact CoreLogic Client Services at support@corelogic.com.

Every Input Property Address provided is standardized. The report displays the input address on the right side of the report header and the resulting Standardized Property Address is displayed on the left side of the report header. The Standardize Property Address is what is used to search for the property.

If the Input Property Address does not standardize, the Input Property Address will be used to search for the property. Additionally, a message will display on the right side of the report header indicating the Subject Property Address did not standardize.

NOTE: Address Standardization is the process of making an address uniform. The USPS defines a standardized address as “one that is fully spelled out, abbreviated by using the Postal Service standard abbreviations … or as shown in the current Postal Service ZIP+4 file.”

A few common reasons are listed below.

• The property is a new construction.

• The property is part of a split parcel.

• There has been a street name change.

• The address is poorly formatted.

Next steps.

• If your initial run did not include the Assessor's Parcel Number (APN), rerun the report with the APN.

• Search for the property on the County Assessor's website. If the property is not found here, then LoanSafe will not be able to find it.

• If the address is on the County Assessor's website, contact your CoreLogic Liaison with the information.

Following are reasons why you would see a different property Site Address in the Subject Property Report section of LoanSafe.

• Every Input Property Address is standardized. The resulting Standardize Property Address is what LoanSafe uses to search for a property.

• The property is in a multi-unit building and we could not find a match to the input unit, so we returned the unit with the most recent public record activity. In this case, we will fire an alert and suppress other property-specific alerts that could generate false results.Alert ID: HP_007

• The LoanSafe request included the Assessor's Parcel Number (APN) from your processing system, and that APN and property zip code were used to identify the property instead of using the input address. In this case, we will fire an alert, indicating the input APN and zip code were used to return the property, and the returned property does not match the input property Alert ID HP_043. Using the APN is also a good way to improve the subject property search results if you did not find the correct property using the address.

Next Steps

• If your initial run did not include the Assessor's Parcel Number (APN), rerun the report with the APN.

• Search for the property on the County Assessor's website. If the property is not found here, then LoanSafe will not be able to find it.

• If the address is on the county Assessor's website, contact your CoreLogic Liaison with the information.

When there are no Subject Property results, this means LoanSafe was unable to find the property in its databases. A few common reasons are listed below.

• The property is a new construction.

• The address is poorly formatted.

• The address is rural.

• The County Assessors' office has not established a new parcel.

• The County Assessors' office has not sent the parcel to CoreLogic.

Next steps

• If your initial run did not include the Assessor's Parcel Number (APN), rerun the report with the APN.

• Search for the property on the County Assessor's website. If the property is not found here, then LoanSafe will not be able to find it.

• If the address is on the county Assessor's website, contact your CoreLogic Liaison with the information.

The First Time Home Buyer indicator applies to the primary borrower only.

When the request does not receive the flag for First Time Home Buyer, we default to N. Please check your request to ensure the First Time Home Buyer flag was included.

LoanSafe considers a borrower a First Time Home Buyer if they have never owned a home. We do not limit to the last three years.

The Fraud Risk Score gauges the overall fraud risk potential a given loan presents. The higher the score, the higher the risk is of material misrepresentation. Keep in mind that mortgage fraud is rare, usually below 1% of all transactions. Using a score helps the user focus on the transactions with the highest correlation to prior reported suspected fraud. Not all loans with high scores have fraud!

CoreLogic's Fraud Risk Score assesses fraud risk using patented pattern-recognition algorithms trained with indicators of likely mortgage fraud as reported by lenders.

The model has eight model segments to effectively address different fraud scenarios from different loan purposes and programs.

The Model is trained on recent loan applications with tagged frauds that reflect current real estate market conditions and fraud trends.

The Fraud Risk Score assesses a variety of factors to determine the overall likelihood of material misrepresentation and may not be directly linked to specific alerts with a high ranking. For example, an inconsistency in borrower identifying information may trigger a high-level alert that is more likely an indication of a data entry error than the likelihood of fraud. Alternatively, the presence of several medium-level alerts may increase the overall risk inherent to the transaction.

When the Fraud Risk Score is over 700, the Top Score Contributors will display below the Fraud Risk Score.

A Fraud Risk Score that is less than 550 is considered a Low risk of misrepresentation.

A Fraud Score that is greater than or equal to 550 and less than 700 is considered a Moderate risk of misrepresentation. These loans have a lower-than-random predicted fraud risk.

A Fraud Score that is greater than 700 is considered a High risk of misrepresentation. These loans have a higher-than-random predicted fraud risk, and the risk increases as the score increases.

Low, medium, and high score cutoffs should be set by your organization.

In low-range scores, clear high alerts, which should include compliance-related items such as watch lists and licenses as well as high fraud risk alerts.

In medium-range scores, clear high alerts and review medium alerts.

In high-range scores, clear high alerts and review ALL alerts and Top Score Contributors to ensure the entire situation makes sense, and explanations and documentation are consistent and credible.

If you are running LoanSafe via RealQuest, or an LOS that is not integrated with LoanSafe Connect, click on the link in the blue section "To Clear Alerts, Visit:"

The credentials that you used to order LoanSafe are the same credentials to access LoanSafe Connect.

In order for the LoanSafe report to reflect the cleared alerts, you must rerun the report.

The link in LoanSafe for alert clearing is not displayed for LOS users that have integrated with LoanSafe Connect.

To clear alerts, click on the Launch LoanSafe Connect link within your LOS.

The Review Status is the "LoanSafe Connect" review status for the report. The report must be cleared in LoanSafe Connect and LoanSafe needs to be rerun before the review status will be updated from "In Progress".

The Confirmation of Searches Performed is an at-a-glance summary of the searches conducted on borrowers and all loan participants along with the outcome of the search.

The red exclamation point indicates that alert(s) fired for that search, regardless of the alert severity. Reviewing the alert(s) and clearing them in LoanSafe Connect is recommended.

When all alerts are cleared for a given cell and the report is rerun, a green circle with a green check inside will display:

The red X indicates that the search failed. This will occur if a third-party vendor is down or one of CoreLogic's internal services is down.

It will also occur if MERS is down, and you have the LoanSafe report set to pass when MERS is down. Also related to MERS, the red X will display if you have not established a vendor relationship with CoreLogic in the MERS system or your MERS settings are misconfigured.

It is recommended that you rerun the report when you encounter this scenario.

The orange i indicates there was not enough data to perform the search.

This will occur if the input request contains a first name without a last name or vice-versa. This will also occur if the input company name is less than 3 characters.

The Borrower OFAC check also uses the date of birth for matching. If there is a name match but a missing date of birth in the request or in the OFAC list, the insufficient input icon will display.

If possible, it is recommended that the input be corrected and the report rerun when you encounter this scenario.

LoanSafe does not directly access the Social Security Administration but looks at how the borrower's name, SSN, date of birth, and address have been used in various consumer databases, using a third-party credit header vendor for the information. The information comes from multiple sources, including valid # ranges from SSA, the SS death index, and consumer SSN usage records such as vehicle registrations, licenses, public records, etc.

The SSN Search in LoanSafe:

Looks at consumer records and credit header info to see how the SSN has been used in the past – names and addresses associated with the SSN.

Looks at information about WHEN the SSN was approximately issued and compares to borrower's DOB as submitted to ID anomalies.

Looks at the death master file for SSA to confirm not reported deceased.

Makes sure the number is in the range that can be issued.

Determines the most likely owner of SSN based on consumer records.

This means the credit header vendor has no information on the name and SSN that was submitted. The SSN could be frozen, not issued or randomly issued, or the consumer may have placed a block on their personal information with the data source. LoanSafe will fire an alert in this scenario. Alert ID: IDP_031. When this occurs, neither the borrower's date of birth nor address can be verified.

Next Steps:

• Verify the SSN was entered correctly

• If not entered correctly, re-enter and re-run

• Obtain proof of SSN

The Social Security Administration (SSA) changed the way Social Security Numbers (SSNs) are issued on June 25, 2011. This change is referred to as "randomization." The SSA developed this new method to help protect the integrity of the SSN. SSN Randomization also extends the longevity (increase the amount of assignable numbers) of the nine-digit SSN nationwide.

SSN randomization affects the SSN assignment process in the following ways:

It eliminates the geographical significance of the first three digits of the SSN, currently referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states.

It eliminates the significance of the highest group number and, as a result, the High Group List will be frozen in time and can be used for validation of SSNs issued prior to the randomization implementation date.

Previously unassigned area numbers will be introduced for assignment excluding area numbers 000, 666 and 900-999.

LoanSafe sends the borrower's name, SSN, and address to the third-party credit header vendor. Based on the consumer records the vendor has, they may find a better name match for the SSN, which will show as the Best Match. The best match is the most consistent and frequently seen.

It is possible the borrower will show as an Other Identity, and LoanSafe will fire an alert in this scenario. Alert ID: IDP_025

If the borrower is not the Best Match, it is critical to resolve. Other sections of the report use the Best Match information and may return incorrect information with the borrower is not the Best Match.

Next Steps:

• Verify the SSN was entered correctly

• If not entered correctly, re-enter and re-run

• Obtain proof of SSN

LoanSafe uses a reverse phone search to track the employer information. If you are not seeing the expected result, confirm the employer phone number used to order the report.

The Use Code shows the CoreLogic information, typically from assessor records, regarding the zoning that applies to the address for the employer. The employer address will come from the reverse search unless it is unsuccessful, in which case we will use the input employer address.

LoanSafe uses SIC Codes (Standard Industrial Classification) which are self-determined/self-reported by the companies. Companies that have an SIC listed that falls in a marijuana-business related category are compiled in a database that is refreshed monthly. We search the database at the state level for each employer and borrower associated business.

Yes.

When the borrower's input employer name matches a name in the Marijuana-Registered Business database, INC_006 will fire.

When a business has been found to be associated to the borrower through the Borrower Associated Business Search, and that businesses name matches a name in the Marijuana-Registered Business database, INC_007 will fire.

A company may not report a SIC code, it may be new, or it may have a name variation. The lack of an alert is not confirmation that there is no marijuana-related activity. End-users should continue to use judgment when reviewing employer names.

No, while LoanSafe alerts for marijuana-related businesses, the lack of an alert is not confirmation that there is no marijuana-related business activity. A company may not report an SIC code, it may be new, or it may have a name variation, or it may fall under several SIC categories and happens to choose one that does not trigger. End-users should continue to use judgment when reviewing employer names and other information that may suggest an issue.

This feature uses the borrower's social security number.

Data is collected from a number of public, proprietary, and third-party sources.

The Borrower Associated business data is more focused on small to medium-sized businesses.

This includes everything from sole proprietors to Fortune 500 businesses, non-profit organizations, municipalities, educational institutions, and some estates and trusts.

No

LoanSafe limits the number of businesses to 25.

Approximately 90% of the records will have a Date Last Seen, a missing date is an indication of no public filing within the past two years.

LoanSafe has an alert for the situation where the borrower was not disclosed as being self-employed, but an associated business was found. If the borrower was disclosed as self-employed, the alert will not fire, but the data will still show on the report.

The Loan Application Summary shows information from other applications under the borrower's SSN in the last 120 days.

Lender Activity - refers to applications within your organization for this borrower, either for a different property address or for the same address as the submitted subject property, but with a different loan number. Make sure you are accounting for all activity in your loan assessment.

Other Lender Activity - refers to applications outside your organization, for a different property address. Confirm you are accounting for possible concurrent transactions at other lenders.

The Loan Registry Search shows information from MERS for all history under the borrower's SSN. If there is a new loan in the last 120 days, it will also generate an alert. Alert ID: IDP_038.

The addresses here are compiled from multiple sources.

A credit header call is made and addresses are returned that are tied to the borrower. The addresses come from several sources, including credit header, utility bills, driver's license, vehicle registrations, public record bankruptcies/liens/judgments, etc.

Addresses are sourced from MERS.

Addresses are sourced from the CoreLogic consortium database.

Proprietary logic.

A few common reasons are listed below.

The property is in a Trust and part of the Trust name matches the borrower's last name.

The property is owned by a parent, most often this is a Father (Sr.) Son (Jr.) scenario. Note: LoanSafe does have "Too young to own" logic. Meaning, if Jr was not 18 at the time Sr took ownership, Jr will not be flagged as owning the property.

The owner's name matches an AKA. LoanSafe uses the input name as well as the AKAs that are returned from the credit header call.

Both the owner of the property and the Borrower have a common name part, which results in a fuzzy name match. Example: John Doe and Joe Doe. The last name matches, as does the first initial.

LoanSafe has owner occupancy logic based on several factors. The house icon identifies the property the logic has determined to be the borrower's primary residence.

This indicates the property has had a foreclosure in the past 7 years that is associated to the borrower.

This indicates the property has had a distressed transaction such as a Notice of Default, Short Sale, Deed In Lieu or Foreclosure. The transaction may or may not be associated with the borrower.

This indicates there the property is currently listed for sale on MLS.

This indicates the transaction where the borrower(s) took ownership.

This indicates a distressed transaction such as a Notice of Default, Short Sale, Deed In Lieu or Foreclosure. The transaction may or may not be associated with the borrower.

Third Party Detail shows information from NMLS for loan originators and lenders, from ASC.goc (appraisers subcommittee) for appraisers, and Secure Insight™ for settlement agents.