Mortgage Lenders Have New Tool Against Fraud

The amount of fraud committed by borrowers when obtaining a mortgage is increasing, and standard compliance and misrepresentation tools are no longer enough to equip lenders to deal with the problem. As fraud becomes savvier, lenders are experiencing a greater hit in their profits. CoreLogic has created a solution with its new IdentityPro engine, which asseses a borrower’s likelihood to commit mortgage fraud by analyzing behavior. The system reveals suspicious patterns in the arena where most mortgage fraud originates the greatest financial loss.

The system goes beyond standard Social Security number checks by analyzing a borrowers buying and living patterns, comparing it to current activity and correlating the activity with similar activity associated with fraud for profit. The program also supplies lenders with compliance and misrepresentation abilities that spot identity theft, stray borrowers and owner-occupancy misrepresentation. The hope is that the program will be a proactive tool, stopping fraudulent loans before they are funded and lowering operating costs overall.