The solution combines First American CoreLogic's fraud tool with TPG's risk management services, indemnity programs and training. Through this partnership, TPG will help lenders establish business rules and guidelines and employ the First American CoreLogic LoanSafe Fraud Manager tool to enforce those policies in the lender's daily operations, the companies explain. Lenders who use this joint solution will be insured against fraud losses by Lloyd's of London, which has a relationship with TPG.
LoanSafe Fraud Manager integrates patented pattern-recognition technology with the First American CoreLogic's property and fraud database. In retrospective head-to-head testing, LoanSafe Fraud Manager detected twice as much fraud as any other alternative fraud provider and with very low false positive rates, the company says.
Founded in 1986, TPG was the first U.S. company to offer insurance covering repurchase losses due to mortgage fraud and material financial inaccuracy; to date, it has written fraud-insurance coverage on more than 1 million loans. The company also provides training and consulting services designed to minimize fraud risk and uses a patented lender-rating system to quantify the risk embedded in a lender's underwriting, quality control and review practices.