Method for mortgage fraud detection

• US 20050108025A1
• Filed: 11/14/2003
• Published: 05/19/2005
• Est. Priority Date: 11/14/2003
• Status: Active Grant

• Current Assignee: Corelogic Solutions LLC (CoreLogic Incorporated)
• Original Assignee: First American Real Estate Solutions LLC (CoreLogic Incorporated)
• Inventors: Cagan, Christopher L.
• Granted Patent: US 7,599,882 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/018 Certifying business or products
• CPC Class Codes: G06Q 30/0185 Product, service or business identity fraud
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/167 Closing

Abstract

A method of detection of fraud in a mortgage application: in a computer system, maintaining a database of sales prices of real properties in a geographic area where the property is located; obtaining a valuation history for the property; obtaining historical sales data for similar properties in the geographic area; computing price ratios using these valuation histories; computing a distortion index based on the price ratios, the distortion index indicating the likelihood of a fraudulent valuation.

Claims

11. The method as set forth in claim 11, wherein said mortgage application specifies a requested value of the subject real property and said total distortion index is compared to a predetermined allowable total distortion index to detect fraud in the mortgage application

17-1. A method as set forth in claim 1, wherein said distortion index includes a temporal distortion index.

22. A method of using a computer system to detect anomalous valuations in a real property transaction involving a subject real property, comprising the steps of:

maintaining in the computer system a database of valuation-generating events for a plurality of real properties in a geographic area in which the subject real property is located,

for said subject property, obtaining a subject property record set including a price of said property and the date thereof for at least one valuation-generating event;

obtaining from the computer system a valuation history data set for said subject property, comprising prices and the dates thereof for a plurality of timepoints;

obtaining, using the computer system, historical sales data for property in the geographic area in which the subject real property is located,

computing price ratio data using the valuation history for the subject property and the historical sales data for the subject property in the geographic area in which the subject property is located, and

computing a distortion index based on the price ratio data to detect an anomalous valuation of the subject real property.