Utilizing multiple vendors and products to evaluate and reduce loan risk can waste time and run up costs. TransactionPRO analyzes mortgage loan transactions for discrepancies in borrower quality, transaction participant quality and property collateral valuation and wraps all of these risk evaluations into a single, inexpensive product that screens every loan as it goes through the origination process and is carried through or applied again for the secondary and servicing markets.
Fully Customizable
Set risk your tolerances and automate follow-up due diligence:
- Receive current and comprehensive data for accurate decision making at each step of the mortgage lifecycle
- Get recommendations for the appropriate next step without having to go through costly and time-consuming bump-logic
- Custom-fit risk parameters to your loan processes
- Upload and update your data at your leisure
TransactionPRO leverages all relationships within LPS Valuation Solutions to automatically or manually upgrade to the appropriate series of products, based on the assessed risks.
Property Analysis
Collateral value is one of the more important aspects of a mortgage transaction. Studies show that default costs are 500 percent higher when a property was not initially valued correctly. TransactionPRO evaluates:
- Collateral overvaluation or undervaluation – Determines if the appraised or estimated value is at risk of improper valuation
- Sales history information – Identifies risk of the subject property for any flip or fraud activity using LPS' rich data sets
- Sales comps – Analyzes comparison sales used to derive the subject property value for risk of flipping or default
- Neighborhood information – Assesses the impact of neighborhood activity, such as employment statistics, price volatility, conformance and LPS Valuations-supplied quarterly reports on the value of the subject property and market area
- MLS data risk – Reviews nationwide MLS data for market and subject valuation risks using time on market, market price and trend analysis
- Future value – Evaluates risk of future overvaluation using LPS Valuation Solutions’ proprietary market forecast models
Borrower Analysis
With fraud hitting an all-time high, the history of the borrower is extremely important from a risk perspective. Borrower indicators are broken down into the following areas:
- Early payment default risk
- Borrower fraud or error risk
- Loan profitability
Transaction Participants Analysis
Each transaction participant should be analyzed for quality of product and solutions that are based on fact. Studies show that there is close to a $20,000 average difference between completing a transaction with the ‘right’ participants and ‘wrong’ participants. LPS Valuation Solutions’ creates transaction participant risk scores that break down individual risk into the following areas:
- Appraiser information – Analyzes historical appraiser performance data for potential fraud or valuation concerns
- Broker information – Looks at historical broker performance data for potential fraud or valuation issues
- Real estate agent information – Examines real estate agent history for possibility of fraud or valuation issues
- Title information – Reviews the title company as a part of the loan transaction for historical purposes such as claim payment history
- Escrow information – Identifies history of the escrow company as they pertain to the loan transaction
- Other – Combines any other requested transaction participant risk as available within the LPS data sources
Reduce the risk of your loans today!
Call 800-282-1104 or Click Here for more information today!