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Newly released Fraudbot technology, created by the San Diego-based company, Point Predictive, protects lenders from systematic fraud as they automate and accelerate their loan origination process. This artificial intelligence technology sorts through more than 100 million loan applications and 10 billion risk attributes to detect hidden links across vast data sets.
Point Predictive's recent research shows mortgage lenders faced $20 billion in mortgage lending fraud exposure last year. It can be difficult for lenders to trust the information presented on a loan application. Underwriters have to deal with all kinds of schemes from borrowers like synthetic identities, income and employment misrepresentation, document forgeries, straw borrowing schemes, and collateral fraud. Now that more of the loan application process is being digitized, fraud detection can as well.
“The Consortium approach gives lenders a cross-industry perspective on the trustworthiness of the information they receive on credit applications,” said Tim Grace, co-founder, and CEO of Point Predictive. “Innovations like Fraudbot provide one of the earliest indicators of a fraud threat. Lenders who can automatically clear truthful applications are in the best position to quickly fund more performing loans.”
Fraudbot can search forensically for suspicious anomalies in the data that would be invisible to the human eye. In early 2021, the Fraudbots that were deployed had detected 2,000 instances of potential fraud, equating to $351 million in suspected loan fraud.
“Some lenders are moving forward with digital automation more slowly than possible because of the massive fraud risks that they could face without adequate defenses. Point Predictive is in the absolute best position to help lenders better identify concentrated fraud activity by fraudsters operating in the shadows, as well as a fraud perpetrated by trusted third parties like rogue mortgage brokers and a few shady car dealerships,” said co-founder and chief fraud strategist at Point Predictive, Frank McKenna. “Member organizations can see those fraud patterns forming weeks or even months before the first early payment default occurs. We’re excited to launch this service to lenders to expose these patterns as they happen.”
More information about Point Predictive and its technology tools can be found at www.pointpredictive.com.