Method and apparatus for detecting fraudulent loans
View Patent ↗The present invention relates to a method and apparatus for detecting fraudulent activity by preventing the rapid funding of multiple loans on the same property, by providing a collective database where real estate property information is examined and the apparatus detects whether at least two mortgage applications are the same property as collateral.
1. A computer-based method of detecting potentially fraudulent loan applications on a property, comprising:
obtaining data from a plurality of loan applications and storing the data in a database;
searching the data in the database and detecting, using a server, whether at least two of the plurality of loan applications are using the same property as collateral;
determining, using the server, a status for each of the plurality of loan applications which are using the same property as collateral;
identifying, using the server, two or more of the plurality of loan applications which are using the same property as collateral, where each of the two or more of the plurality of loan applications identified is currently pending, has an approved status, and is from a different lender; and
alerting, using the server, a user of the two or more of the plurality of loan applications identified as potentially fraudulent loan applications on a property.
2. The method according to claim 1 , wherein the alerting, using the server, a user comprises providing an electronic message to the user.
3. The method according to claim 1 , further comprising providing, using the server, the user with a real-time loan status for each loan application.
4. The method according to claim 1 , further comprising producing, using the server, a custom report that analyzes lender's own efficiency in processing loan applications as compared with an industry benchmark.
5. An apparatus for detecting potentially fraudulent loan applications on a property, comprising:
a server configured to collect loan application data from a plurality of loan applications and store the data in a database, wherein the server detects and alerts a user that at least two of the plurality of loan applications are for the same property and have been approved for funding as potentially fraudulent loan applications on a property, wherein each of the at least two of the plurality of loan applications is currently pending, and is from a different lender.
6. The apparatus of claim 5 , wherein the loan application data is selected from a group consisting of a borrower name, an address of a target property that a borrower seeks to finance, a loan amount, a loan purpose, whether the target property is owner occupied, a target property value, a loan status with any status change date and time stamped, and loan-to-value estimates.
7. The apparatus of claim 6 , wherein the loan purpose is selected from a group consisting of purchase, refinance, cash out, and home equity line of credit.
8. A non-transitory computer readable storage medium comprising instructions which, when executed by a computer system and is connected to at least one data repository, perform a method comprising:
(a) obtaining, by the computer system, data from a plurality of loan applications and storing the data in the data repository;
(b) searching, by the computer system through a communication channel, the data in the data repository and detecting whether at least two of the plurality of loan applications are using the same property as collateral;
(c) identifying, by the computer system, two or more of the plurality of loan applications which are using the same property as collateral, where each of the two or more of the plurality of loan applications identified is currently pending, has an approved status, and is from a different lender; and
(d) alerting, by the computer system, a user of the two or more of the plurality of loan applications identified.
9. The non-transitory computer readable storage medium according to claim 8 , wherein the alerting a user comprises providing an electronic message to the user.
10. The non-transitory computer readable storage medium according to claim 8 , wherein the method further comprises providing, by the computer system, the user with a real-time loan status for each loan application.
11. The non-transitory computer readable storage medium according to claim 8 , wherein the method further comprises producing, by the computer system, a custom report that analyzes lender's own efficiency in processing loan applications as compared with an industry benchmark.