Interthinx has added 21 new conflict-of-interest alerts within its FraudGUARD scoring system that identify possible collusion between loan participants. The technology advancement will help lenders identify non-arms-length mortgage transactions – a serious indicator of potential mortgage fraud, the company says.
‘A non-arms-length transaction is one between family members, or when a personal or business relationship exists between the borrower(s) and seller and other third parties associated with the transaction,’ explains Connie Wilson, executive vice president of Interthinx.
‘These types of relationships provide reason to suspect likely conflict of interest or collusion and therefore should be thoroughly investigated along with all the other data points of the loan application before loan funding,’ Wilson continues. ‘FraudGUARD precisely identifies the conflicting parties through detailed descriptions and unique alerts.’