Fraud and Prevention

First American CoreLogic Unveils Mortgage Fraud Prevention Guarantee

By James Comtois
October 7, 2009

First American CoreLogic, a Santa Ana, Calif.-based property and ownership information, analytics and services provider, unveiled its 2X mortgage fraud guarantee, which is an assurance that lenders will save twice as much in fraud losses and that the savings will be at least twice as much as the cost of the service.

This guarantee assures current and prospective clients that they will identify twice the level of potential fraud using First American CoreLogic's fraud detection technology than when using technology from any other fraud solutions vendor, or the trial period will be free.

With the 2X guarantee, First American CoreLogic will work with clients to develop either a production trial or retrospective testing program for measuring its patented pattern-recognition anti-fraud technology. If First American CoreLogic's fraud-detection technology doesn't identify a minimum of twice the loss savings over products from its competitors and deliver a 200% return on investment during the measurement time period, the cost of scoring the loans will not be charged.

"The 2X guarantee is extremely timely, given that the Federal Bureau of Investigation has recently reported that mortgage fraud had increased by 300% over the past three years and has estimated that fraud may be costing lenders as much as $5 billion per year," said Tim Grace, senior vice president of fraud solutions at First American CoreLogic.

The company is able to offer the 2X guarantee because of its pattern-recognition fraud technology, its property data and analytics and its recent acquisition of BasePoint Analytics. Pattern-recognition technology is still a relatively new concept in the mortgage industry, though well accepted in the credit card industry where it has reduced fraud by as much as 70%.

The First American CoreLogic patent covers technology that identifies behavioral trends for applicants, brokers, loan officers, lenders and program types as well as the historical patterns of both fraudulent and nonfraudulent loan applications.

The technology provides a much higher degree of predictability by identifying the loan applications at greatest risk of fraud while significantly reducing the expensive overhead cost and false positives associated with the process of matching database information to loan applications.

First American CoreLogic is a member of the First American Corp. family of companies.