DataVerify has incorporated a national building permit data set into its Data Risk Intelligent Verification Engine (DRIVE) to help lenders identify and avoid potential short sale and property-flipping losses.
Currently containing 88 million permits on properties in more than 4,000 cities in the U.S., this data will allow lenders to reduce the resources and time spent manually calling individual building departments to request permit data on a specific property, DataVerify says.
According to DataVerify's review of its clients' transactions, 7% of properties are valued under current market value for other similar comparable properties, and 3% of transactions include borrowers who are in the real estate or mortgage industry but did not disclose that fact.
Four percent of transactions are in areas with ‘very high’ rates of property-flipping activity, and another 4% contain IRS-validated tax transcript income variances of greater than 20%, Steve Halper, DataVerify's president, says.
‘We used this type of information to create additional tools customer can use to predict these unique risks associated with short sales,’ Halper says of the building permit data.