First American CoreLogic's Multi-Closing Alert Program Prevents $175 Million in Mortgage Fraud Loss
—Program Identifies Multi-lien Closing Fraud for Equity Lenders—
October 27, 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 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 United States.
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.
“Our participation in the Multi-Closing Alert Program has enabled us to take an aggressive and proactive industry approach to combating these increasingly common and costly fraud scenarios,” said Joe Jackson, senior vice president for Wells Fargo Home Mortgage. “We believe this cooperation with other leading lending institutions, combined with the program’s proven effectiveness, will become an industry standard in loss prevention strategy.”
“We’re committed to equipping the mortgage industry with the most effective tools for fraud prevention,” said George Livermore, chief executive officer for First American CoreLogic. “The Multi-Closing Alert Program has clearly demonstrated in its short tenure just how crucial it is for lenders to leverage our information and technology to combat common fraud schemes.”
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.facorelogic.com.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, is the largest provider of real estate, property and ownership data and advanced analytics for information on foreclosures, delinquencies, median home prices, home price indices, home valuations, sales activity and mortgage loan originations. The market-specific data covers 7,569 ZIP codes, 958 Core Based Statistical Areas (CBSA) and 3,050 counties located in all 50 states and the District of Columbia. This data represents 99 percent of the United States population, 140 million (97 percent) of all properties, more than 50 million active mortgages and $2 trillion in loan-level, non-agency mortgage securities. First American CoreLogic’s products and services enable customers to better manage mortgage risk, protect against fraud, acquire and retain customers, manage credit risk, mitigate loss, decrease mortgage transaction cycle time, more accurately value properties and determine real estate trends and market performance. More information about First American CoreLogic can be found at www.facorelogic.com.
About First American Corporation
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, 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, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.