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First American Data and Analytics, a division of First American Financial Corporation, launched its AppIntelligence Score fraud solution. AI Score is a fraud pattern-recognition score that gives high-volume lenders and investors the ability to more precisely identify the risk of fraud and early payment default, on both mortgage applications or a portfolio, according to a press release.
The tool uses proprietary predictive modeling to find a more clear understanding of where fraud and early payment default risk are likely to occur.
"For example, loans with the highest AI Score, usually about 10% of total application volume, account for 50% or more of total fraud risk. This targeting enables lenders to focus their reviews on the most at-risk loans, while streamlining loan approvals and reducing operational costs," according to the release.
AI Score also has a retro-scoring capability, which gives lenders the ability to run a portfolio to identify which loans would have been flagged by the model. Lenders can also set their own risk tolerance with AI Score's scale.
"The ability to analyze millions of alerts that underwriters have cleared, and then feed that information back into the model, is what makes the AI Score one of the most sophisticated models on the market," said Robert Karraa, president of First American Data & Analytics. "By targeting the most at-risk loans, AI Score will help lenders streamline the number of review cycles and still uncover the highest risk areas of fraud."