To improve its LoanSafe Fraud Manager platform, CoreLogic has integrated real-time identity risk insight from ID Analytics as part of its technological product.
The partnership will provide mortgage lenders additional risk management power to identify data that monitors fraud and risk prevention for a potential borrower.
By utilizing its proprietary ID Network which captures unique identity elements including name, address, date of birth, telephone number, e-mail address and an individual’s website address, ID Analytics reveals potentially fraudulent activity that separates creditworthy consumers from those that are higher risk.
Top-tier customers—credit card issuers, banks, retailers, online, telecommunication providers, utilities and subprime, mortgage and auto lenders—all contribute to the network to see how an individual loan applicant behaves across industries over time.
“ID Network offers users of the next generation LoanSafe Fraud Manager more visibility into consumer identity behavior over time and streamlines verification processes by identifying discrepancies in name and date of birth, the number of times a Social Security number has been used to apply for credit or services, or the number of times fraud has been reported at an address over a specific period of time,” said Stephen Coggeshall, chief technology officer at ID Analytics.
There are more than 30 identity-related attributes available to lenders with the incorporation of the two products. This helps lenders prepare rules and workflow that is appropriate for their loan programs or risk criteria.
Prior to the agreement, the Santa Ana, Calif.-based company’s mortgage fraud analytics solution exposed suspicious mortgage loans at the application stage, enabling lenders, investors and servicers to identify each loan’s fraud risk before or after funding.
The product allows lenders to customize their criteria based on best practices and change this as many times as needed. Lenders can also easily deploy new data sources and analytics, such as rules, scorecards and pattern-recognition models to spot questionable loans and take proactive steps to prevent early payment defaults and buybacks.
Tim Grace, senior vice president of product management and analytics at CoreLogic, said lenders are going to benefit from the combination of the two fraud detection products pertaining to risk mitigation.
“Equipping fraud prevention teams with early alerts and truly advanced, actionable analytics gives mortgage lenders a significant advantage in this highly challenging business climate,” Grace said.
According to Fannie Mae’s “Fraud Findings Statistics,” identity-related misrepresentations in loans nearly doubled in February 2011 since March 2010, increasing from 7% to 13%.
“Using comprehensive, dynamic consumer behavior insight provides an important tool against the mortgage fraud challenge,” said Jay Foley, executive director of Identity Theft Resource. “By incorporating the services of ID Analytics, CoreLogic will be presenting one of the strongest tools for defeating fraud that is available. When industry leaders work together to proactively identify misrepresentation or discrepancies in loan applications, such as identity information, consumers and lenders both benefit from reduced financial losses.”
