BasePoint releases fraud detection solution MortgagePress.comBasePoint, FraudMark for Home Equity, mortgage fraud
BasePoint Analytics, a provider of scientific fraud and risk
analytic scoring solutions, announced the availability of FraudMark
for Home Equity, a fraud detection solution designed to address the
home equity market, enabling lenders to fund loans with
With current economic pressures and property value declines,
home equity loans and lines are more vulnerable than ever before.
This specific design and development based on millions of previous
examples of home equity lines and loans allows this new release of
FraudMark to uncover the unique patterns of fraud specific to this
portfolio type. This enables the most precise selection of loans
that will result in loss for the home equity portfolio. The
FraudMark for Home Equity solution applies BasePoints proven
pattern recognition analytics to new loan applications, enabling
lenders to focus investigation on the most risky applications
before spending resources for underwriting and external
verifications. FraudMark can also be used to assess current risk
within a home equity portfolio in order to take proactive measures
to mitigate losses.
"Lenders are suffering high losses on their home equity
portfolios, often due to funding loans with undetected fraud such
as income, employment, straw buyer and identity theft. FraudMark
for Home Equity enables lenders to quickly discern if material
misrepresentation that will lead to loss is present in a loan
application, thereby cutting underwriting costs and portfolio
losses," said Tim Grace, president and CEO of BasePoint Analytics.
"Our focus on home equity fraud detection is critical to minimize
risk in today's lending environment. Built on the industry-leading
FraudMark foundation, our home equity solution takes advantage of
patent-pending pattern recognition technology proven effective in
other industries, such as the credit and debit card industry."
FraudMark for Home Equity produces a fraud risk score in seconds
indicating the likelihood that the loan application contains
misrepresentation indicative of future loss. Accompanying the score
are likely fraud reasons, risk indicators, and recommended actions
for lenders to focus investigative resources on the highest risk
loans. Lower scoring loans can proceed through the underwriting
process, enabling efficient processes and meaningful savings to
lenders. FraudMark for Home Equity is based on statistical models,
and is more precise than data validation tools. Lenders get a large
return on investment with the proven high detection rates.
Analysis conducted on lender home equity applications shows a
50-60 percent detection of fraudulent loan value that would result
in financial loss, by reviewing only 10 percent of the top scoring
loans. Providing a timely, comprehensive assessment of fraud risk,
FraudMark for Home Equity complements the BasePoint EPD Alert
solution in protecting lenders from both fraud and other early
payment default losses. In the past two years, clients have
prevented over $2 billion in losses using BasePoint solutions.
For more information, visit www.basepointanalytics.com.