MDA Lending Solutions Creates Fraud Detection Tech

MDA Lending Solutions launched a suite of mortgage fraud prevention software based on the recommendations that Fannie Mae gave the industry in the Loan Quality Initiative.

The LoanShield suite has three components — a credit review report creates automated comparisons of credit ratings, reviews and reports of borrower identity verification and anti-fraud screenings and an integration to the Mortgage Electronic Registration System (MERS) data and fraud analysis technology to check borrowers against Office of Foreign Assets Control, General Services Administration and Housing and Urban Development Limited Denial of Participation listings.

Fannie Mae launched the LQI in June. It includes a series of steps and programs to promote better lending and underwriting practices on loans purchased by the government-sponsored enterprises. Other technology firms have brought similar offerings to market to assist lenders with adapting their operations to adhere to recommendations and requirements of the program, including many loan origination system developers that are adding integrations to Fannie’s EarlyCheck, a pre-funding mortgage review service.

MDA reached an agreement in November to sell its Lending Solutions division and insurance information and valuation unit Marshall & Swift/Boeckh to private equity group TPG Capital for $850 million. The deal is expected to close in the coming weeks.