MERSCORP Inc. (MERS) and Interthinx have joined forces to launch a national fraud-prevention database that the companies say will allow lenders to seek, identify and share suspected fraudulent activity in loan applications from the point of origination.
Lenders using MERS FraudALERT, which is powered by Interthinx, will submit loan application data and incident reports with suspected or confirmed fraudulent activity to a centralized database. The system will then notify other lenders that have loans that may have connections to the data, alerting them to possible fraudulent transactions in their pipelines.
"While the industry currently has access to excellent loan-level fraud-detection technology, lenders still face unacceptable risk," says R.K. Arnold, MERS president and CEO. "Fraudsters circumvent those tools by perpetrating multiple instances of fraud concurrently because no one is speaking to each other. Only by creating a collaborative, industry-wide fraud-prevention database can this activity be stopped."
MERS FraudALERT combines MERS's infrastructure and industry-wide integration with the fraud detection capabilities of Interthinx. Lenders who register their loans on the MERS system will have immediate access to the database of fraud-related information through the new product, which will be available sometime this quarter.
Third-party fraud solution vendors will also be able to access and leverage the system, MERS and Interthinx say.
SOURCES: MERS, Interthinx