First American CoreLogic is guaranteeing lender clients that they will identify twice the level of potential fraud using Fist American CoreLogic's fraud detection technology than when using technology from any other fraud solutions vendor, or the lender's product trial period will be free.
The ‘2X mortgage fraud guarantee’ assures lenders will save twice as much in fraud losses and that the savings will be at least twice as much as the cost of the solution, the company says.
First American CoreLogic will work with clients to develop either a production trial or retrospective testing program for measuring its patented pattern-recognition anti-fraud technology. If First American CoreLogic's fraud-detection technology doesn't identify a minimum of twice the loss savings over products from its competitors and deliver a 200% return on investment during the measurement time period, the cost of scoring the loans will not be charged.
The company says its newly patented pattern-recognition fraud technology, property data and analytics, and recent acquisition of BasePoint Analytics enable it to offer the guarantee. Pattern-recognition technology has reduced fraud in the credit card industry by as much as 70%, First American CoreLogic says.
The First American CoreLogic patent covers technology that identifies behavioral trends for applicants, brokers, loan officers, lenders and program types, as well as the historical patterns of both fraudulent and non-fraudulent loan applications.
"The 2X guarantee is extremely timely, given that the Federal Bureau of Investigation has recently reported that mortgage fraud had increased by 300 percent over the past three years and has estimated that fraud may be costing lenders as much as $5 billion per year," says Tim Grace, senior vice president of Fraud Solutions at First American CoreLogic.
SOURCE: First American CoreLogic