First American CoreLogic Prevents $175M in Mortgage Fraud Losses
Monday, November 03, 2008
As lending and brokering practices, as well as borrowers' credit criteria have been thrust further into the spotlight, mortgage fraud, or at least awareness of it, has gone up. First American CoreLogic, a member of The First American Corporation family of companies, says that its Multi-Closing Alert Program has prevented more than $175 million in mortgage fraud losses in its first 20 months of implementation. The equity lenders participating in the program represent more than half of the equity lending market in the United States, First American said.
The Multi-Closing Alert Program helps lenders identify and stop multi-lien fraud, also known as “shotgun” fraud. Multi-lien fraud targets residential equity lending through fraudulent borrower schemes to apply for and close multiple loans on a single residential property within a short time period. First American's Multi-Closing Alert Program monitors all participating institution loan applications and pending closing activity and electronically notifies them of multiple activities occurring on a single residential property.
According to data from First American CoreLogic, this type of fraud continues to be prevalent in several regions of the United States, including California, New York, New Jersey, and Florida.
Wells Fargo Home Mortgage is one of the institutions employing First American's fraud alert solution. Joe Jackson, SVP for Wells Fargo Home Mortgage, said, “Our participation in the Multi-Closing Alert Program has enabled us to take an aggressive and proactive industry approach to combating these increasingly common and costly fraud scenarios. We believe this cooperation with other leading lending institutions, combined with the program’s proven effectiveness, will become an industry standard in loss prevention strategy.”
“We’re committed to equipping the mortgage industry with the most effective tools for fraud prevention,” said George Livermore, CEO for First American CoreLogic. “The Multi-Closing Alert Program has clearly demonstrated in its short tenure just how crucial it is for lenders to leverage our information and technology to combat common fraud schemes.”
In addition to receiving daily alerts and loan analysis, program participants receive access to monthly fraud prevention best-practice forums. Open to residential mortgage lenders of all sizes, the Multi-Closing Alert Program is available by subscription, with the cost based on loan volume.
The Multi-Closing Alert Program helps lenders identify and stop multi-lien fraud, also known as “shotgun” fraud. Multi-lien fraud targets residential equity lending through fraudulent borrower schemes to apply for and close multiple loans on a single residential property within a short time period. First American's Multi-Closing Alert Program monitors all participating institution loan applications and pending closing activity and electronically notifies them of multiple activities occurring on a single residential property.
According to data from First American CoreLogic, this type of fraud continues to be prevalent in several regions of the United States, including California, New York, New Jersey, and Florida.
Wells Fargo Home Mortgage is one of the institutions employing First American's fraud alert solution. Joe Jackson, SVP for Wells Fargo Home Mortgage, said, “Our participation in the Multi-Closing Alert Program has enabled us to take an aggressive and proactive industry approach to combating these increasingly common and costly fraud scenarios. We believe this cooperation with other leading lending institutions, combined with the program’s proven effectiveness, will become an industry standard in loss prevention strategy.”
“We’re committed to equipping the mortgage industry with the most effective tools for fraud prevention,” said George Livermore, CEO for First American CoreLogic. “The Multi-Closing Alert Program has clearly demonstrated in its short tenure just how crucial it is for lenders to leverage our information and technology to combat common fraud schemes.”
In addition to receiving daily alerts and loan analysis, program participants receive access to monthly fraud prevention best-practice forums. Open to residential mortgage lenders of all sizes, the Multi-Closing Alert Program is available by subscription, with the cost based on loan volume.
