DataVerify Using MERS To Find Unknown Liens

To combat one form of mortgage fraud, DataVerify, a provider of data verification and fraud detection, has created an electronic integration with MERS, the electronic registry for tracking ownership of mortgage loans and servicing rights, to help mortgage lenders reduce loan losses by identifying undisclosed mortgage transactions within a specified window of time.

By integrating DRIVE (Data Risk Intelligent Verification Engine) with the electronic registry, DataVerify says it can give lenders a verification process that relies on "touch less" technology, allowing them to ferret out undisclosed debt on a property. The DRIVE platform searches the MERS system to obtain a response that lists all MERS' registered real estate loans closed by the borrower.

"The MERS system has become an essential due diligence step in the mortgage industry's war on fraud," said Steve Halper, president of DataVerify. He said DataVerify is the first automated fraud prevention vendor to link its verification and fraud analytics to the MERS database.

"As multiple application mortgage fraud continues to grow, the MERS system loan registration information has emerged as one of its most formidable combatants," said Dan McLaughlin, executive vice president for MERS.

The DataVerify technology streamlines the loan registration search process, helping lenders detect and prevent multiple loan application fraud, he added.

DataVerify specializes in fraud prevention and decision management technology. Its services include real-time payroll registry verification, automated salary verification, and undisclosed real estate and businesses. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/