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C&S Marketing Enhances Fraud Detection with Scoring Tool

In an effort to enhance its ability to detect and prevent loan fraud, C&S Marketing has upgraded its collateral risk scoring tool, HistoryPro.

HistoryPro shows the likelihood of foreclosure for a property in a statistical score. The upgrade allows customers to accelerate their loan processing workflow through a simplified report interface, faster query response times and a richer base data set.

"Fraud is on the rise and its prevention is critical to the mortgage lending industry," said Steve Schroeder, CEO of C&S Marketing. "Early detection is the key."

The Sacramento, Calif.-based provider of collateral risk assessment and fraud prevention solutions recently conducted an analysis of 600,000 loan originations using subject address and property value, exposing 20% of properties in a single area involved in loan fraud, then predicting 12-month loss estimates. The study also identified fraud rings, pinpointing where to tighten controls on third-party sellers.

C&S Marketing's proprietary risk assessment engine, which evaluates 45,000 loans per day and is used by nine of the 10 top U.S. lenders, evaluates numerous elements to determine its F-score, including the relationship between foreclosures and price appreciation, the subject property sales price relative to the current appraisal or origination estimate, the origination value relative to the market, prior foreclosures on the subject property and geographic conditions surrounding the subject property.

In addition, HistoryPro references foreclosure and volatility models as well as overall performance studies to incorporate the most accurate data possible.

"As fraud perpetrators continuously refine their methods, our first line of defense is using a product like HistoryPro, which ultimately increases our bottom-line results," said Joe McKone, COO of First Franklin Financial.

HistoryPro also includes subject property history detail, nearby property sales information, market data, and a buyers and sellers transaction summary. These features are combined with other analytical metrics that can help lenders better identify and control collateral risk.

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