Comergence partners with BasePoint to improve risk detection and compliance monitoringMortgagePress.comComergence Compliance Monitoring, TPO management, risk analytic scoring solutions, BasePoint Analytics, FraudMark
Comergence Compliance Monitoring, an outsource solution provider
for TPO management, and BasePoint Analytics, a provider of
scientific fraud and risk analytic scoring solutions, today
announced Comergence is augmenting its TPO management and
compliance monitoring services by partnering with BasePoint to
provide comprehensive fraud and early pay default risk management
for lenders and brokers. Comergence chose a broad set of BasePoint
solutions to offer clients the most robust fraud and risk
protection products available. Within its lender protection
services, Comergence will offer BasePoint's BrokerWatch score, the
only solution that provides broker risk scoring based on the risk
and performance of loans assembled by brokers. BrokerWatch compares
a broker's loan risk to other brokers, and assesses the risk of the
broker's loans submitted at a given lender compared to those
submitted to other lenders in BasePoint's consortium of over 12
million loans. This helps lenders determine if they are being
adversely selected.
Comergence will also offer BasePoint's market-leading FraudMark
score and BasePoint EPD" Alert. These offerings ensure lenders and
brokers have the ability to score and stop fraud and early payment
default before loans are submitted by the broker or funded by the
lender. BasePoint has helped lenders, investors and due diligence
firms prevent over $2 billion in suspicious loans over the last two
years.
"With growing losses in the industry, many lenders exited their
broker-based businesses to curb losses. However, BasePoint has
conducted several lender studies that showed that 100 percent of
the lenders' fraud and EPD losses were due to the loans submitted
by only 8-12 percent of their brokers," said Tim Grace, president
and CEO of BasePoint Analytics. "It is our hope that more companies
realize the analytical resources available and implement
comprehensive risk management solutions comprised of BrokerWatch to
precisely identify the high risk brokers and take appropriate
action before the losses are incurred, and the FraudMark solution
and EPD alert to identify on a loan-byloan basis which loans being
submitted require more scrutiny before submittal, acceptance, or
funding."
"We elected to partner with BasePoint because they offer the
best fraud and risk detection solutions in the industry. We have
seen the advantage of the extremely low false positives of
BasePoint's products first hand. In addition, this is the only
broker risk score based on loans the broker has submitted to
lenders and facilitates our business model to identify risky
brokers before they start submitting loan files to our lender
clients--not after the damage is done. Adding this pattern
recognition risk detection to our first-in-industry outsource
solution makes our third party originator due diligence and
compliance monitoring service truly unique," said Greg Schroeder,
Comergence President. "Lenders and brokers can realize immediate
measurable loss prevention and improved business relationships with
these solutions."
Tim Grace added, "The combination of Comergence with BasePoint
solutions will offer lenders a secure way to source loans from
brokers, and brokers a way to protect their good name by
prescreening loans before submitting them to lenders. As the
industry rebuilds and new companies emerge, we are excited to see
and partner with companies like Comergence that are taking
proactive steps to implement comprehensive due diligence and
monitoring solutions to stop fraud and default."
The BasePoint solutions use sophisticated analytic scoring
technology to identify risky mortgage loans and brokers,
facilitating quick and effective due diligence on high risk loans
and businesses before funding. The models accurately predict the
likelihood of a loan containing fraud or payment risk that will
result in financial loss to the lender/investor. The scores risk
rank all loans or entities to create a highly targeted subset for
review. BasePoint's specialized solutions provide real savings to
clients.
For more information, visit www.comergence.com or www.basepointanalytics.com.
