First American CoreLogic Prevents $40 Million in Mortgage Fraud Losses through Multi-Closing Alert
—Program Establishes Fraud Firewall That Identifies and Stops “Shotgunning” Fraud—
January 8, 2008, SANTA ANA, Calif.
First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies and America’s largest provider of advanced property and ownership information, analytics and services, today announced that its Multi-Closing Alert Program prevented more than $40 million dollars in residential mortgage fraud losses for institutional participants during the first year of the program.
The Multi-Closing Alert Program is a service offered by First American CoreLogic that helps banks and lending institutions identify and stop multi-lien fraud, otherwise known as “shotgun” fraud. Multi-lien fraud targets residential equity lending through fraudulent borrower schemes to apply and close on multiple loans against a single residential property within a short time period. According to data from First American CoreLogic, this type of fraud is noticeably increasing in regions around the country including Florida and California. The Multi-Closing Alert Program, for the first time, enables a proactive, rapid response to this type of fraud scheme. The program identifies instances where multiple equity loan applications and pending closing activity exist on an individual residential property across participating institutions, and then alerts clients through daily electronic notifications.
The Multi-Closing Alert Program currently serves nine of the largest residential lending institutions, representing more than half of the equity lending market. Bank and lending institution participants have reported identifying and preventing more than 230 confirmed fraud schemes nationwide, valued at more than $40 million dollars in total hard losses.
“This type of fraud adds up quickly because an individual can extract an amount several times the value of an individual property,” said George Livermore, chief executive officer for First American CoreLogic. “We’re committed to equipping lenders and the mortgage industry with the most effective tools for defending against fraud schemes from every angle. The Multi-Closing Alert Program is a unique cross-industry mechanism made possible only through the cooperation of our customers and the application of our extensive property and homeowner data and analytics.”
In addition to receiving daily alerts and loan analysis, participants receive access to monthly fraud prevention best practice forums. Open to residential mortgage lenders of all sizes, the Multi-Closing Alert Program is available by subscription, with the cost based on loan volume. More information about the First American CoreLogic Multi-Closing Alert Program can be found at www.corelogic.com.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies, was formed through the merger of First American Real Estate Solutions, America’s largest provider of advanced property and ownership information, analytics and services, with CoreLogic Systems, the leading provider of residential mortgage risk management and fraud protection technology and services. The combined companies’ databases cover more than 3,000 counties, representing 99.1 percent of the United States population. With more than 600,000 users nationwide, First American CoreLogic products are used by businesses to improve customer acquisition and retention, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, measure the value of residential and commercial properties, identify real estate trends and neighborhood characteristics, track market performance and increase market share. More information can be found on the Internet at www.facorelogic.com or corelogic.com.
About The First American Corporation
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of $8.5 billion in 2006, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information and First Advantage. More information about the company and an archive of its press releases can be found at www.firstam.com.