First American CoreLogic, a member of The First American Corporation family of companies, says its Multi-Closing Alert Program has prevented more than $175 million in losses in its first 20 months for participating equity lenders, who represent more than half of the equity lending market in the U.S.
The Multi-Closing Alert Program helps lenders identify and stop multi-lien fraud, also known as shotgun fraud. Multi-lien fraud targets residential equity lending through fraudulent borrower schemes to apply for and close multiple loans on a single residential property within a short time period. The Multi-Closing Alert Program monitors all participating institution loan applications and pending closing activity and electronically notifies them of multiple activities occurring on a single residential property.
According to data from First American CoreLogic, this type of fraud continues to be prevalent in several regions of the U.S., including California, New York, New Jersey and Florida.
Source: First American CoreLogic