Systems and methods for assessing property value fraud

1. A method for determining at least one indication of whether a mortgage loan application for a property is likely to involve property value fraud, the method comprising:

receiving, by a data processor, information representative of the property from a database, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, using the data processor when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules being implemented by the data processor and including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

adjusting the first indication by a fourth predefined amount that is a multiple of the first predefined amount and the third predefined amount when the current rate of foreclosures has increased by the second predefined amount and the property has been foreclosed on within the predetermined amount of time;

calculating, using the data processor, an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, using the data processor and when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

2. The method of claim 1 , further comprising:

receiving information representative of a borrower for the mortgage loan application, the information including at least one of a credit history, a credit score, income, occupation, previous addresses and employers.

3. The method of claim 1 , wherein receiving further comprises:

receiving information including an appraisal of the property.

4. The method of claim 3 , wherein determining the second indication further comprises:

determining the second indication based on one or more rules and the received information.

5. The method of claim 1 , further comprising:

providing at least one of the first indication and the second indication in the form of a flag.

6. The method of claim 1 , further comprising:

providing at least one of the first indication and the second indication in the form of a score.

7. The method of claim 6 , further comprising:

scaling the score into a range of score values, such that a low score value within the range of score values corresponds to a high likelihood that the mortgage loan application involves property value fraud and a high score value within the range of score values corresponds to a low likelihood that the mortgage loan application involves property value fraud.

8. The method of claim 6 , further comprising:

scaling the score into a range of score values, such that a low score value within the range of score values corresponds to a low likelihood that the mortgage loan application involves property value fraud and a high score value within the range of score values corresponds to a high likelihood that the mortgage loan application involves property value fraud.

9. The method of claim 1 , further comprising:

using as the region an area associated with a ZIP code of the property.

10. The method of claim 1 , further comprising:

using foreclosures on the property within the past 30 months as the foreclosure information.

11. A method for determining whether a mortgage loan application for a property is likely to involve property value fraud, the method comprising:

receiving, by a data processor, information representative of the property from a database, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, using the data processor when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on a model and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the model being executed by the data processor and including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

calculating, using the data processor, an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, using the data processor and when evaluating the mortgage loan application, a second indication based on the model and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

12. The method of claim 11 , wherein receiving further comprises:

receiving information including an appraisal of the property.

13. The method of claim 11 , further comprising:

using, as the appraisal score, a Home Value Score.

14. The method of claim 11 , wherein determining the second indication further comprises:

determining the second indication based on the model, the received information, and the appraisal score.

15. The method of claim 11 , further comprising:

providing the first indication in the form of a flag.

16. The method of claim 11 , further comprising:

providing the first indication in the form of a score.

17. The method of claim 11 , further comprising:

providing the second indication in the form of a flag.

18. The method of claim 11 , wherein the model employs a statistical technique.

19. The method of claim 11 , further comprising:

receiving information representative of a borrower for the mortgage loan application, the information including at least one of a credit history, a credit score, income, occupation, previous addresses and employers.

20. A system for determining at least one indication of whether a mortgage loan application for a property is likely to involve property value fraud, the system comprising:

means for receiving information representative of the property, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

means for determining, when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

means for calculating an appraisal score indicating whether an appraisal value of the property is faulty; and

means for determining, when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

21. A system for determining at least one indication of whether a mortgage loan application for a property is likely to involve property value fraud, the system comprising:

a processor; and

a memory, communicatively connected to the processor,

wherein the processor and the memory are configured to perform a method comprising:

receiving information representative of the property, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

adjusting the first indication by a fourth predefined amount that is a multiple of the first predefined amount and the third predefined amount when the current rate of foreclosures has increased by the second predefined amount and the property has been foreclosed on within the predetermined amount of time;

calculating an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

22. A system for determining whether a mortgage loan application for a property is likely to involve property value fraud, the system comprising:

a processor; and

a memory, communicatively connected to the processor,

wherein the processor and the memory are configured to perform a method comprising:

receiving information representative of the property, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

calculating an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

23. A tangible computer-readable medium containing computer-executable instructions to configure a data processor to perform a method for determining at least one indication of whether a mortgage loan application for a property is likely to involve property value fraud, the method comprising:

receiving information representative of the property, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

adjusting the first indication by a fourth predefined amount that is a multiple of the first predefined amount and the third predefined amount when the current rate of foreclosures has increased by the second predefined amount and the property has been foreclosed on within the predetermined amount of time;

calculating an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.

24. A tangible computer-readable medium containing computer-executable instructions to configure a data processor to perform a method for determining whether a mortgage loan application for a property is likely to involve property value fraud, the method comprising:

receiving information representative of the property, the information including foreclosure information on the property and a current rate of foreclosures corresponding to a region in which the property is located;

determining, when evaluating the mortgage loan application and prior to issuing a mortgage based on the mortgage loan application, a first indication based on one or more rules and the received information, the first indication representative of a likelihood that the mortgage loan application involves property value fraud, the one or more rules including:

comparing the current rate of foreclosures to a previous rate of foreclosures,

adjusting the first indication by a first predefined amount when the current rate of foreclosures has increased by a second predefined amount,

determining whether there has been a foreclosure on the property within a predetermined amount of time,

adjusting the first indication by a third predefined amount when there has been a foreclosure within the predetermined amount of time, and

calculating an appraisal score indicating whether an appraisal value of the property is faulty; and

determining, when evaluating the mortgage loan application, a second indication based on the one or more rules and the appraisal score, the second indication representative of a likelihood that the mortgage loan application involves property fraud.