Fraud and Prevention

Mortgage Technology Firm Acquires Fraud Prevention Provider

By James Comtois
August 19, 2009

As a means of expanding its fraud prevention and detection services, Lender Processing Services, a Jacksonville, Fla.-based provider of integrated technology and services to the mortgage and real estate industries, acquired Verification Bureau, a fraud prevention and Web-based verification software developer.

LPS is combining its current collateral risk tools and analytic capabilities with Verification Bureau's automated income, identity and employment verification software to provide the mortgage industry with more ways combating mortgage fraud and managing risk.

Established in 2001, Verification Bureau serves 2,500 clients and 18,000 users worldwide. Leon, Mayer & Co. advised Verification Bureau in the transaction.

Greg Whitworth, president of the LPS loan portfolio solutions division, said that the acquisition was made because, with the constant evolving of complex fraud methods, LPS wanted "to expand its risk management offerings" by adding Verification Bureau's comprehensive, agile fraud prevention system to its offerings.

With the addition of Verification Bureau's FraudPredator offerings, LPS now delivers automated, Web-based solutions to quickly verify applicant income, identity and employment against IRS and SSA databases. All results are delivered through secure online accounts and users can submit and track orders in real time.

"Verification Bureau pioneered paperless and automated Internal Revenue Service and Social Security Administration direct verification solutions for lenders to help optimize their fraud prevention efforts," said Esteban Reyes, CEO of Verification Bureau. "By becoming part of LPS, we will take fraud prevention to the next level."