IP Library › Granted Patent US 7,599,882
Granted Patent B2
US 7,599,882 · App. 10/713,348 · Granted Oct 6, 2009

Method for mortgage fraud detection

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Quick Facts
Patent No.
US 7,599,882
App. No.
10/713,348
Granted
Oct 6, 2009
Kind
B2
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 (42)

1. A method of detecting fraud during a real estate transaction, the method comprising:

using a computer data processor to:

access a database of real property prices in a geographic area in which a subject real property is located;

using data from the database or data from a requestor to generate a temporal data set comprising a current yearly real property price for the subject real property and a set of past yearly real property prices for the subject real property;

generate from the database a spatial data set comprising a current yearly real property price for real property with similar characteristics as the subject real property and a set of past yearly real property prices for real property with similar characteristics as the subject real property;

generate a set of temporal variances;

generate a set of spatial variances;

compute a spatial distortion based on the set of spatial variances;

compute a temporal distortion based on the set of temporal variances;

compute a total distortion by adding the temporal distortion to the spatial distortion; and

produce a distortion ratio score to indicate a likelihood of fraud based on the total distortion.

2. The method of claim 1 , wherein the temporal data set is generated by using sales data for the subject real property.

3. The method of claim 1 , wherein the temporal data set is generated by using an automated valuation model.

4. The method of claim 1 , wherein the temporal data set is generated by using a combination of sales history data for the subject real property and an automated valuation model applied to the subject real property.

5. The method of claim 1 , wherein the spatial variances comprise real property prices selected from a group consisting of real property prices from a same zip code as the subject real property, real property prices from a same postal city as the subject real property, and real property prices from a same county as the subject real property.

6. A method of detecting fraud during a real estate transaction, the method comprising:

using a computer data processor to:

access a database of real estate prices in a geographic area in which a subject real property is located;

generate from the database a real estate price data set selected from a group consisting of real estate prices in a same zip code as the subject real property, real estate prices in a same city situs code as the subject real property, and real estate prices in a same county as the subject real property;

generate a spatial variance by computing at least two years of ratios, the ratios, corresponding to the selected real estate price data set selected from a group consisting of subject real property prices to the real estate prices in the same zip code from the real estate price data set, the subject real property prices to the real estate prices in the same city situs from the real estate price data set, and the subject real property prices to the real estate prices in the same county from the real estate price data set;

compute a spatial distortion by determining a maximum value in the spatial variance and subtracting the maximum value from the current year spatial variance; and

produce a distortion ratio score to indicate a likelihood of fraud based on the spatial distortion.

7. A system for detecting fraud during a real estate transaction, comprising:

a computer processor; and

a memory storing program instructions, said program instructions when executed by the computer processor causes the computer processor to:

access a database of real estate prices in a geographic area in which a subject real property is located;

generate from the database a real estate price data set selected from a group consisting of real estate prices in a same zip code as the subject real property, real estate prices in a same city situs as the subject real property, and real estate prices in a same county as the subject real property;

generate a spatial variance by computing at least two years of ratios, the ratios, corresponding to the selected real estate price data set selected from a group consisting of subject real property prices to the real estate prices in the same zip code from the real estate price data set, the subject real property prices to the real estate prices in the same city situs from the real estate price data set, and the subject real property prices to the real estate prices in the same county from the real estate price data set;

compute a spatial distortion by determining a maximum value in the spatial variance and subtracting the maximum value from the current year spatial variance; and

produce a distortion ratio score to indicate a likelihood of fraud based on the spatial distortion.

8. A system for detecting fraud during a real estate transaction, comprising:

a computer processor; and

a memory storing program instructions, said program instructions when executed by the computer processor causes the computer processor to:

access a database of real property prices in a geographic area in which a subject real property is located;

use data from the database or data from a requestor to generate a temporal data set comprising a current yearly real property price for the subject real property and a set of past yearly real property prices for the subject real property;

generate from the database a spatial data set comprising a current yearly real property price for real property with similar characteristics as the subject real property and a set of past yearly real property prices for real property with similar characteristics as the subject real property;

generate a set of temporal variances;

generate a set of spatial variances;

compute a spatial distortion based on the set of spatial variances;

compute a temporal distortion based on the set of temporal variances;

compute a total distortion by adding the temporal distortion to the spatial distortion; and

produce a distortion ratio score to indicate a likelihood of fraud based on the total distortion.

Assignments (21)
SECURITY INTEREST Recorded Jun 10, 2021
From: CDS BUSINESS MAPPING, LLC; CLAREITY SECURITY, LLC; CORELOGIC CREDCO, LLC; CORELOGIC DORADO, LLC; CORELOGIC SOLUTIONS, LLC; CORELOGIC TAX SERVICES, LLC; CORELOGIC, INC.; FNC, INC.; LOCATION INC. GROUP CORPORATION
To: U.S. BANK NATIONAL ASSOCIATION
Reel/Frame 056539/0146 →
SECOND LIEN PATENT SECURITY AGREEMENT Recorded Jun 10, 2021
From: CDS BUSINESS MAPPING, LLC; CLAREITY SECURITY, LLC; CORELOGIC CREDCO, LLC; CORELOGIC DORADO, LLC; CORELOGIC SOLUTIONS, LLC; CORELOGIC TAX SERVICES, LLC; CORELOGIC, INC.; FNC, INC.; LOCATION INC. GROUP CORPORATION
To: ARES CAPITAL CORPORATION
Reel/Frame 056539/0227 →
FIRST LIEN PATENT SECURITY AGREEMENT Recorded Jun 10, 2021
From: CDS BUSINESS MAPPING, LLC; CLAREITY SECURITY, LLC; CORELOGIC CREDCO, LLC; CORELOGIC DORADO, LLC; CORELOGIC SOLUTIONS, LLC; CORELOGIC TAX SERVICES, LLC; CORELOGIC, INC.; FNC, INC.; LOCATION INC. GROUP CORPORATION
To: JPMORGAN CHASE BANK, N.A.
Reel/Frame 056539/0241 →
RELEASE OF SECURITY INTEREST RECORDED AT 032798/0047 Recorded Jun 5, 2021
From: BANK OF AMERICA, N.A.
To: CORELOGIC SOLUTIONS, LLC
Reel/Frame 056493/0957 →
CORRECTIVE ASSIGNMENT TO CORRECT THE ASSIGNEE'S NAME PREVIOUSLY RECORDED ON REEL 014755 FRAME 0304. ASSIGNOR(S) HEREBY CONFIRMS THE ASSIGNMENT OF ASSIGNOR'S INTEREST. Recorded Jun 4, 2015
From: CAGAN, CHRISTOPHER L.
To: FIRST AMERICAN REAL ESTATE SOLUTIONS, L.P.
Reel/Frame 035821/0245 →
CORRECTIVE ASSIGNMENT TO CORRECT THE RECEVING PARTY DATA PREVIOUSLY RECORDED AT REEL: 019341 FRAME: 0844. ASSIGNOR(S) HEREBY CONFIRMS THE CHANGING. Recorded May 8, 2015
From: FIRST AMERICAN CORELOGIC, INC.
To: FIRST AMERICAN CORELOGIC HOLDINGS, INC.
Reel/Frame 035624/0321 →
CORRECTIVE ASSIGNMENT TO CORRECT THE EXECUTION DATE FROM 04/04/2014 TO 04/09/2014 PREVIOUSLY RECORDED ON REEL 033034 FRAME 0292. ASSIGNOR(S) HEREBY CONFIRMS THE RELEASE OF SECURITY INTERESTS RECORDED PRIOR TO JUNE 25, 2011. Recorded Jun 18, 2014
From: BANK OF AMERICA, N.A., AS ADMINISTRATIVE AND COLLATERAL AGENT
To: CORELOGIC INFORMATION RESOURCES, LLC (F/K/A CORELOGIC US, INC. AND F/K/A FIRST ADVANTAGE CORPORATION); CORELOGIC DORADO, LLC (F/K/A CORELOGIC DORADO CORPORATION AND F/K/A DORADO NETWORK SYSTEMS CORPORATION); CORELOGIC, INC. (F/K/A FIRST AMERICAN CORPORATION); CORELOGIC SOLUTIONS, LLC (F/K/A MARKETLINX, INC. AND F/K/A CORELOGIC REAL ESTATE SOLUTIONS, LLC (F/K/A FIRST AMERICAN REAL ESTATE SOLUTIONS LLC AND F/K/A CORELOGIC INFORMATION SOLUTIONS, INC. (F/K/A FIRST AMERICAN CORELOGIC, INC.)); CORELOGIC TAX SERVICES, LLC; CORELOGIC VALUATION SERVICES, LLC (F/K/A EAPPRAISEIT LLC); CORELOGIC REAL ESTATE INFORMATION SERVICES, LLC (F/K/A FIRST AMERICAN REAL ESTATE INFORMATION SERVICES, INC.)
Reel/Frame 033198/0553 →
RELEASE OF SECURITY INTERESTS RECORDED PRIOR TO JUNE 25, 2011 Recorded May 28, 2014
From: BANK OF AMERICA, N.A., AS ADMINISTRATIVE AND COLLATERAL AGENT
To: CORELOGIC INFORMATION RESOURCES, LLC (F/K/A CORELOGIC US, INC. AND F/K/A FIRST ADVANTAGE CORPORATION); CORELOGIC DORADO, LLC (F/K/A CORELOGIC DORADO CORPORATION AND F/K/A DORADO NETWORK SYSTEMS CORPORATION); CORELOGIC, INC. (F/K/A FIRST AMERICAN CORPORATION); CORELOGIC SOLUTIONS, LLC (F/K/A MARKETLINX, INC. AND F/K/A CORELOGIC REAL ESTATE SOLUTIONS, LLC (F/K/A FIRST AMERICAN REAL ESTATE SOLUTIONS LLC AND F/K/A CORELOGIC INFORMATION SOLUTIONS, INC. (F/K/A FIRST AMERICAN CORELOGIC, INC.)); CORELOGIC TAX SERVICES, LLC; CORELOGIC VALUATION SERVICES, LLC (F/K/A EAPPRAISEIT LLC); CORELOGIC REAL ESTATE INFORMATION SERVICES, LLC (F/K/A FIRST AMERICAN REAL ESTATE INFORMATION SERVICES, INC.)
Reel/Frame 033034/0292 →
NOTICE OF RELEASE OF PATENT SECURITY INTEREST Recorded May 2, 2014
From: JPMORGAN CHASE BANK, N.A., AS COLLATERAL AGENT
To: CORELOGIC SOLUTIONS, LLC (F/K/A/ FIRST AMERICAN CORELOGIC, INC.)
Reel/Frame 032815/0317 →
SECURITY INTEREST Recorded May 1, 2014
From: CORELOGIC SOLUTIONS, LLC
To: BANK OF AMERICA, N.A.
Reel/Frame 032798/0047 →
NOTICE OF RELEASE OF PATENT SECURITY INTEREST Recorded Apr 25, 2014
From: HSBC BANK USA, NATIONAL ASSOCIATION
To: CORELOGIC SOLUTIONS, LLC
Reel/Frame 032763/0196 →
MERGER Recorded Jan 12, 2012
From: CORELOGIC INFORMATION SOLUTIONS, INC.
To: CORELOGIC SOLUTIONS, LLC
Reel/Frame 027522/0001 →
SECURITY AGREEMENT Recorded Jun 24, 2011
From: CORELOGIC INFORMATION SOLUTIONS, INC.
To: BANK OF AMERICA, N.A., AS COLLATERAL AGENT
Reel/Frame 026499/0118 →
CHANGE OF NAME Recorded Aug 31, 2010
From: FIRST AMERICAN CORELOGIC, INC.
To: CORELOGIC INFORMATION SOLUTIONS, INC.
Reel/Frame 024915/0075 →
SECURITY AGREEMENT Recorded Jun 14, 2010
From: FIRST AMERICAN CORELOGIC, INC.
To: JPMORGAN CHASE BANK, N.A., AS COLLATERAL AGENT
Reel/Frame 024529/0157 →
CORRECTIVE SECURITY AGREEMENT TO CORRECT THE ASSIGNOR AND ASSIGNEE. REEL 020339 FRAME 0783 Recorded May 14, 2010
From: FIRST AMERICAN CORELOGIC HOLDINGS, INC.
To: HSBC BANK USA, NATIONAL ASSOCIATION
Reel/Frame 024390/0090 →
SECURITY INTEREST Recorded Dec 27, 2007
From: HSBC BANK USA, NATIONAL ASSOCIATION
To: FIRST AMERICAN CORELOGIC HOLDINGS,INC.
Reel/Frame 020339/0783 →
ASSIGNMENT OF ASSIGNOR'S INTEREST Recorded Jul 13, 2007
From: FIRST AMERICAN CORELOGIC HOLDINGS, INC.
To: FIRST AMERICAN CORELOGIC, INC.
Reel/Frame 019550/0609 →
CHANGE OF NAME Recorded May 29, 2007
From: FIRST AMERICAN CORELOGIC, INC.
To: FIRST AMERICAN CORELOGIC HOLIDNGS, INC.; FIRST AMERICAN CORELOGIC HOLDINGS, INC.
Reel/Frame 019341/0844 →
MERGER Recorded Apr 18, 2007
From: FIRST AMERICAN REAL ESTATE SOLUTIONS, L.P.
To: FIRST AMERICAN CORELOGIC, INC.
Reel/Frame 019171/0485 →
ASSIGNMENT OF ASSIGNOR'S INTEREST Recorded Nov 14, 2003
From: CAGAN, CHRISTOPHER L.
To: FIRST AMERICAN REAL ESTATE SOLUTIONS
Reel/Frame 014755/0304 →