Multi-Closing Alert Program

What Is Multi-Closing Fraud?

Multi-lien or shotgunning fraud is an extremely profitable scam that takes advantage of the lag between closing and recording to solicit multiple loans on a single property. Difficult to detect through traditional methods and extremely profitable for perpetrators, multi-lien losses can often be 100% of the loan amount each and can affect several lenders.

Closing the Gap

The Multi-Closing Alert Program (MCAP) curbs shotgunning fraud by notifying members when the system detects two or more loans closing on the same property address. You and other lenders---including the top five US mortgage originators---contribute daily batch files of closing activity that we compare against the MCAP contributed database. When the system finds an address match, we issue a same-day alert to affected lenders, notifying each of the property address and transaction participants’ contact information (without SSN information).

Proof Positive

Since its inception, MCAP has detected more than 1,800 cases confirmed by lenders as shotgunning fraud attempts. Those 1,800 cases represent fraud saves totaling over $264 million.  In 2017 alone, MCAP has prevented nearly $7 million in fraudlent loans.

Though shotgunning attempts continue evolving, perpetrators cannot alter the property address, making even the most complex schemes vulnerable to detection through MCAP.

Fraud-Fighting Consortium

By changing tactics, moving to new geographies and avoiding MCAP participant lenders, criminals continue to turn large profits on successful shotgunning schemes. Yet, the effectiveness MCAP offers proves that lenders can stop multi-lien fraud with a simple, coordinated effort. The more lenders who participate in MCAP, the greater the industry’s ability to put an end to multi-lien fraud.

Join the Fight

MCAP is open to lenders of all sizes through subscription packages based on loan volume. In addition to our notification services, we facilitate monthly calls to discuss program details and fraud prevention best practices. To learn more about becoming an MCAP participant, contact us today.

Benefits

  • Avert losses by identifying multi-lien fraud attempts before funding loans
  • Earn significant ROI by avoiding only a few fraudulent loans
  • Check loans against lender contributed databases

Results

  • Since its inception, MCAP has detected more than 1,800 cases confirmed by lenders as shotgunning fraud attempts.
  • Those 1,800 cases represent over $264 million in fraud "saves".

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