CoreLogic has released IncomeAdvisor, an income-assessment tool that delivers both a fraud score and actionable alerts, as well as an income estimation. The tool helps lenders comply with recent federal mandates requiring lenders to validate borrowers' ability to pay based on verifiable income and asset information, CoreLogic explains.
Application information is run through patented pattern-recognition technology, and a report is instantly generated for each borrower. Statistical models and income percentiles for borrower information are derived from CoreLogic's consortium database of loan applications.
Each report displays an overall income risk assessment of ‘high,’ ‘medium’ or ‘low’ that is based on model fraud risk evaluation, as well as other features, including an empirically derived income fraud score of 1-999 that predicts the likelihood that the income provided by the applicant is false.