First American CoreLogic Introduces "2X" Mortgage Fraud Prevention Guarantee
-Guarantee Leverages Newly Patented Pattern-Recognition Technology That Identifies Twice the Level of Fraud Verses Alternative Solutions-
October 4, 2009, 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 its 2X mortgage fraud guarantee. This first-of-its-kind guarantee assures current and prospective clients that they will identify twice the level of potential fraud using First American CoreLogic’s fraud detection technology than when using technology from any other fraud solutions vendor, or the trial period will be free.
The 2X guarantee is an assurance that lenders will save twice as much in fraud losses and that the savings will be at least twice as much as the cost of the solution. First American CoreLogic will work with clients to develop either a production trial or retrospective testing program for measuring its patented pattern-recognition anti-fraud technology. If First American CoreLogic’s fraud-detection technology doesn’t identify a minimum of twice the loss savings over products from its competitors and deliver a 200 percent return on investment (ROI) during the measurement time period, the cost of scoring the loans will not be charged.
First American CoreLogic is able to offer the 2X guarantee because of its newly patented pattern-recognition fraud technology, its industry-leading property data and analytics and the expanded fraud domain expertise gained from the recent acquisition of BasePoint Analytics. Pattern-recognition technology is still a relatively new concept in the mortgage industry, though well accepted in the credit card industry where it has reduced fraud by as much as 70 percent. The First American CoreLogic patent covers technology that identifies behavioral trends for applicants, brokers, loan officers, lenders and program types as well as the historical patterns of both fraudulent and non-fraudulent loan applications. The technology provides a much higher degree of predictability by identifying the loan applications at greatest risk of fraud while significantly reducing the expensive overhead cost and false positives associated with the process of matching database information to loan applications.
“The 2X guarantee is extremely timely, given that the Federal Bureau of Investigation has recently reported that mortgage fraud had increased by 300 percent over the past three years and has estimated that fraud may be costing lenders as much as $5 billion per year,” said Tim Grace, senior vice president of Fraud Solutions at First American CoreLogic.
For more information about the 2X mortgage fraud guarantee program, visit www.facorelogic.com/2x.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, is the largest provider in the U.S. of real estate, property, ownership, fraud, mortgage and mortgage securities data—and the advanced analytics that use them—for the assessment of real estate sales, collateral valuation, home price trends, mortgage originations, mortgage- and asset-based securities pricing, foreclosures, delinquencies and asset dispositions. Our market-specific data covers 98 percent of all U.S. ZIP codes and 3,059 counties in all 50 states and the District of Columbia, representing 99 percent of the U.S. population, 97 percent of all properties (140 million), more than 50 million active mortgages and 96 percent of loan-level, non-agency mortgage securities. First American CoreLogic’s products and services enable customers to manage credit and mortgage risk, protect against fraud, acquire and retain customers, mitigate loss, decrease mortgage-transaction cycle times, value properties accurately, determine real estate trends and project future market performance. For more information about First American CoreLogic, please visit www.facorelogic.com.
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $6.2 billion in 2008, 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.