While there is no shortage of mortgage fraud, there are plenty of mortgage fraud prevention products.
Hansen Quality recently announced its new automated fraud screening tool, HQ FraudID report, will help detect ID fraud and other intentional misrepresentation on new loans and existing portfolio loans.
“With mortgage fraud becoming such a serious and growing issue, the industry must take action to ensure the protection of financial institutions and consumers,” said Hansen President Greg Hansen in the announcement.
The Fidelity National Financial Inc. subsidiary said the report determines borrowers’ risk level by searching over 70 potential risk indicators, including multiple verifications of the borrower name, address, social security number, and phone number. The results are summarized and given an Identity Fraud Score indicating the severity of risk factors detected for identity theft, intentional misrepresentation, fraud, or elevated credit risks, according to the announcement.
The report also provides details on the risk indicators and information that may help in a further investigation, the announcement said. A specific recommendation is provided on what lenders and investors need to do to minimize losses associated with the subject transaction.
The Florida-based company said results are obtained in minutes, and often seconds, at a cost similar to that of an automated-valuation model.
California-based Interthinx recently announced it added its solutions, Electronic Loan Review and Third Party Review, to its public training offerings, which are available to its customers online for training employees on such platforms and their functionality.
Interthinx, the resulting company from the merger of Sysdome and AppIntelligence, said by “merging the training expertise from both companies and expanding our public online training offerings, we are increasing the options available to our clients and giving them access to tools for identifying and preventing mortgage fraud in their daily operations.”
The electronic review is an automated system designed to check borrower and loan information at the pre-funding stage to detect and prevent fraud, Interthinx said, while the third party review provides a background check and data verification of third parties including brokers, appraisers and builders.
“We have worked with the AppIntelligence team for more than two years and have relied on their customized training to provide detailed product explanations and delivery of fraud data,” Alicia Martin, quality assurance assistant for Synovus Mortgage Corp., reportedly said. “This has enabled Synovus Mortgage to recognize signs of potentially fraudulent activity earlier in the workflow and respond accordingly.”
Another mortgage fraud prevention vendor, First Line Data, offers its Mortgage Industry Decision-Support Technology to “provide lenders thousands of reports each month that infuse knowledge and confidence into their third-party originator approval process,” according to its Web site.
First Line says it screens third-party originator applicants, as well as lenders’ existing base, with the system, according to its Web site.
Lenders need not perform time-consuming searches or verifications as First Line reportedly provides lenders with information on their applicants, including mortgage brokers, correspondent lenders, real estate appraisers, and closing agents. The reports contain information such as mortgage industry, regulatory, public record, referential, and credit data, according to the site.
For approved third-party originators, First Line says it provides lenders with information such as license data and civil records search.
