Fraud Detection Key to Loss Prevention
Saxon Mortgage says any undetected fraud equals loss on the backend and technology can help ease the problem.
"We automate our fraud detection at both pre- and post-funding," explained Julie Woodley, VP of risk at Saxon. "Any time you want to catch fraud, you really want to catch it early, prior to funding.
"In the end, misrepresentations equal losses on the backend," she said. "Also, if you think about where this is going, fraud equals a higher percentage of defaults and foreclosures, which in turn equals even more loss on the backend. It's all about avoiding those loses in a seamless fashion as early in the process as possible."
Saxon went through an exhaustive search before choosing Interthinx's DISSCO product to meet their fraud detection needs. "We started off testing different products that we could use on the front end," noted Ms. Woodley. "We sent the vendors files that we knew had problems and saw who had the best hit rate. DISSCO was the better product."
Interthinx is a combination of the former Sysdome and AppIntelligence. Both companies merged to form a super anti-fraud detection solution that is still in development.
"The integration of the two companies has been seamless," said Ms. Woodley. "Of all the vendors that I deal with, they have great customer service. I get great service from them."
When looking for the right anti-fraud tool, Ms. Woodley advises lenders to "find something that works with your business. Also, look for something that checks both borrower and subject property data in one application. It should be about getting as close to a one-stop shop as possible."
"We've invested a lot of time and energy into finding out what our customers need," said Jeff Moyer, VP of sales at Interthinx. "We study everything from screen size to how often the user looks at the interface.
"The improvements that we have planned are all geared toward improving the customer experience," he pointed out. "Going forward, automating fraud detection is going to be a big concern in this shrinking market."
In terms of the conference, Mr. Moyer is optimistic. "It's one of our top three shows. However, lender attendance was down last year compared to the year before. We're hopeful that with the change in the market that this year we'll see more lenders in attendance."
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