Mortgage fraud can be committed by a variety of parties involved in the loan origination process, including brokers, mortgage loan officers (MLO), account executives (AE) and appraisers. The patented FraudMark fraud detection solution identifies fraudulent loans before they are funded. Fraudsters, however, continue to find ways to escape detection, and additional views into the loan portfolio can highlight unseen fraud risk.
EntityWatch – Entity Surveillance Solutions
EntityWatch is a risk solution based on proprietary fraud scores designed to assess the risk associated with the various entities involved in the mortgage origination process. The EntityWatch solutions were developed in response to demand for products and services that help curtail the growing multi-billion dollar mortgage fraud problem. Due to the high number of mortgage applications, reviewing the entities involved in each loan is an overwhelming task for most. The Surveillance Manager solutions use predictive analytics to simplify the identification of risky entities by producing a risk score. Each entity is also evaluated across the consortium of over 12 million loans, enabling lenders to determine if an entity is targeting them based on the risk assessment of the entity’s behavior.
EntityWatch enables investigative resources to focus on those entities contributing the highest risk applications. By proactively researching and monitoring these entities, users can reduce fraud, early payment default, repurchase and discount sales.
Using sophisticated technology, EntityWatch produces a predictive risk score along with comprehensive detail on entity behavior and loan performance, in an interactive analytic tool that enables drill down into the detail on loans originated by specific entities. A search capability highlights key entity risk measurements. The software also provides an intelligent way to update watch lists, perform directed audits and identify profitable brokers, AEs, appraisers and MLOs.
Each EntityWatch Solution provides an analytic assessment giving lenders a tool to assess the performance of the entities involved in the origination process. EntityWatch gives lenders the tools to assess loans, enabling them to reward the best performing entities and minimize fraud by taking action on brokers, AEs, appraisers and MLOs generating risky applications. Our extensive analysis shows that lenders focusing on the riskiest entities can substantially reduce their incidence of fraud and payment default.
PatternWatch Service
As fraud perpetrators create new methods to escape fraud detection, or move to new locations, originators and investment banks are vulnerable to losses given the difficulty to detect these behavior patterns. The PatternWatch service helps detect fraud schemes early, delivering actionable reports. PatternWatch is a fraud prevention service that uses pattern recognition techniques and fraud detection expertise to monitor loans, both pre and postfunding, and identify subtle fraud patterns as they emerge in a portfolio.
The PatternWatch service uses advanced link analysis software and fraud detection experts to analyze historical data and current pipeline or funded loans, identifying patterns to reveal hidden, organized fraud schemes such as:
- Income and employment misrepresentations
- Falsified verification of rent
- Non-disclosed non-arms length
- Straw buyers
- Occupancy fraud
The PatternWatch service enables clients to cost-effectively leverage our pattern recognition software and team of experienced fraud data analysts and investigators to identify serious fraud schemes occurring in their portfolio. Monitoring loans on an ongoing basis, patterns are identified quickly, often enabling suspicious loans to be stopped prefunding or before an early payment default.
Fraud trends can be discovered across portfolios based on a “consortium” of data, not just the client’s own information. For example, the use of fraudulent employers and third parties can be identified across portfolios.
The PatternWatch service provides a speedy return on investment. In some cases, discovery of a single fraud trend has provided payback for the service instantly. Some clients have achieved millions of dollars in savings during their first week using the PatternWatch service.
