First American CoreLogic, a member of The First American Corporation family of companies, has announced that Wells Fargo, one of the industry’s top mortgage originators, is implementing First American CoreLogic’s LoanSafe Fraud Manager. LoanSafe Fraud Manager is the mortgage industry’s most advanced fraud prevention technology solution designed to address the needs of lenders seeking to minimize loss from fraud and increase operational efficiency. In addition to the implementation at Wells Fargo, LoanSafe Fraud Manager is now in active evaluation with 10 other lenders, signaling significant market momentum for the solution and continued lender focus on solving the mortgage fraud problem.
“At Wells Fargo, we are committed to partnering with thought leaders in fraud prevention, like First American CoreLogic, to develop solutions to deter future fraud schemes,” said Mike Heid, co-president of Wells Fargo Home Mortgage.
LoanSafe Fraud Manager combines pattern recognition technology with the nation’s largest and most comprehensive property, loan and mortgage fraud data and provides a risk score. First American CoreLogic fraud scientists have created patented fraud models that assign each loan a fraud risk score spanning from one (lowest risk) to 999 (highest risk). The loan-level score has been proven to identify potential fraud with the industry’s highest level of accuracy. By using these scores, lenders can realize revenue increases through quicker and more efficient underwriting and increase revenue by reducing default and foreclosure-related losses associated with fraud. LoanSafe Fraud Manager dramatically reduces false positives and allows lenders to review only the highest risk loans prior to funding.
LoanSafe Fraud Manager now also offers improved reporting with more loan information categories displayed and alerts grouped by likely fraud types. Additionally, this new fraud detection solution offers more input fields for greater functionality and tracking.
“LoanSafe Fraud Manager offers three important economic benefits critical to lenders today: cost reduction, cost avoidance and revenue increase,” said Tim Grace, senior vice president of fraud analytics at First American CoreLogic. “We’ve listened closely to our consortium members—which include representatives from the top 10 mortgage lenders—in developing this game-changing technology. LoanSafe Fraud Manager’s advanced analytic technology, coupled with First American’s unmatched borrower, property and asset information make old methods of fraud detection obsolete and lenders recognize this.”
Lenders using LoanSafe Fraud Manager are further assured by the First American CoreLogic 2X guarantee, which promises that lenders will save twice as much in fraud losses as they did prior to using LoanSafe Fraud Manager and the savings will be at least twice as much as the cost of the solution. The key to LoanSafe Fraud Manager’s effectiveness is the First American CoreLogic Mortgage Fraud Consortium whose members contribute to the largest central repository of application and transaction data in the mortgage industry. The database includes more than 80 million loan applications, or 65 percent of all loan applications annually, and more than 200 million records from servicing data files. Predictive models are created from the Consortium’s data and used in LoanSafe Fraud Manager. It is the only mortgage fraud consortium of its size that is member driven and governed, and does not charge a participation fee. Additional Mortgage Fraud Consortium member benefits include 24/7 data availability, unlimited database access and exclusive access to specific alert analysis.
For more information, visit www.wellsfargo.com, www.facorelogic.com or www.firstam.com.
