First American Real Estate Solutions Announces Release of LoanIQ™

New Analytical Solution Helps Lenders Assess Loan Quality and Detect Fraud

Date: 03/28/2005

ANAHEIM, Calif., March 28, 2005 – First American Real Estate Solutions (RES®), the nation’s largest provider of property and ownership information, analytics and services, today announced the release of LoanIQ, a Web-based loan quality analysis and fraud detection solution that deploys patent-pending technology to instantly identify market risk and collateral valuation fraud for one loan or thousands.

LoanIQ evaluates the subject property and instantly provides an assessment of collateral valuation risk and market volatility, enabling lenders to expedite quality loan files while quickly and accurately identifying loans with a higher risk of loss. In prefunding settings, LoanIQ provides an easy-to-use instant score that helps lenders decide whether to fund a loan and determine if an automated valuation model (AVM) is an appropriate choice for collateral valuation purposes. In post funding, quality control and due diligence, analysts can access LoanIQ’s aerial photos and price appreciation graphs that help them gain insight into loans of questionable quality.

“At a time when mortgage fraud is on the rise, lenders need more advanced methods of assessing loan quality and detecting potentially fraudulent behavior,” says George Livermore, president of First American Real Estate Solutions. “LoanIQ addresses this need by delivering a comprehensive analytical solution that can be implemented easily for immediate results.”

Built on a predictive modeling method known as logistic regression analysis, LoanIQ’s statistical model is trained on a database that includes loans of varying quality—good loans, early default loans and known fraudulent loans.  This allows LoanIQ to evaluate files using more predictors of loan quality than any other product on the market. LoanIQ detects fraud with unprecedented accuracy. 

LoanIQ is designed to work within existing loan origination systems and processes, allowing immediate implementation. Delivery options include a browser-based application, direct system integration through an XML-based connection, or via a batch-file processing approach whereby LoanIQ results are appended to client-provided loan files.

The company is substantiating its confidence in LoanIQ’s accuracy by providing qualified clients with the opportunity to test LoanIQ’s performance at no charge.  This free testing and validation program allows lenders to submit their good and bad loan files and verify the actual performance of LoanIQ prior to implementing the solution.  Parties interested in the LoanIQ testing and validation program may contact Ben Graboske, chief technology officer for First American RES at (714) 701-3735.  

First American RES, a member of The First American Family of Companies, is the nation’s largest provider of advanced property and ownership information, analytics and services. RES’ database covers more than 2,300 counties representing 97 percent of the nation’s real estate transactions. With more than 600,000 users nationwide, RES products are used by companies to improve customer acquisition and retention, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, measure the value of residential and commercial properties, identify real estate trends and neighborhood characteristics, track market performance and increase market share. More information about First American RES can be found on the Internet at www.firstamres.com.

The First American Corporation (NYSE: FAF) is a Fortune 500 company that traces its history to 1889. As the nation’s largest data provider, the company supplies businesses and consumers with information resources in connection with the major economic events of people’s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within six primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $6.72 billion in 2004, First American has 31,000 employees in approximately 1,800 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.