First American CoreLogic Introduces New Integrated Mortgage Fraud Solution: LoanSafe Fraud Manager
––New Technology and Patent Bolsters Company’s Position as the Leading Fraud Prevention Solution Provider—
October 12, 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 the release of LoanSafe® Fraud Manager, a comprehensive new fraud prevention solution that integrates recently acquired BasePoint Analytics’ pattern-recognition technology with the nation’s largest and most comprehensive property, loan and mortgage fraud databases.
LoanSafe Fraud Manager provides a new and unique approach to fraud prevention utilizing the company’s recently patented technology (No. US 7,587,348 System and Method of Detecting Mortgage-Related Fraud). In retrospective head-to-head testing, LoanSafe Fraud Manager detected significantly more fraud at operationally feasible review rates than any other alternative mortgage fraud solution provider.
LoanSafe Fraud Manager scores fraud risk on a 1-to-999 scale and offers a series of alerts to prompt underwriters to provide additional reviews. The alerts are powered by the largest national fraud database, the most inclusive lender loan application database and the most comprehensive recorder and assessor data on properties in the U.S. These alerts include undisclosed debt indications, multi-lien detection, owner-occupancy assessments, collateral risk information, income reasonableness, third-party risk and identity fraud exposure. The product also provides extensive reporting on property history, market conditions and other occupancy, employment and identity history information to provide the most efficient fraud assessment available.
LoanSafe Fraud Manager achieves a significant ‘lift’ in fraud detection. In a recent test of more than one million loans, it identified 70 percent of the lender-identified fraud and more than 50 percent of the total foreclosure and charge-off losses within the top 10 percent of scores. In other retrospective tests, LoanSafe Fraud Manager identified two times more fraud and early payment default risk than alternative anti-fraud products within the highest 10 percent of scores. The solution also produced significantly fewer false positives. The system uses First American CoreLogic’s patented technology to monitor third-party entities and understand unique data anomalies indicative of fraud risk to generate the most accurate mortgage fraud scores available.
“LoanSafe Fraud Manager is the technology solution powering our recently introduced 2X mortgage fraud guarantee, which assures current and prospective clients that they will identify twice the level of fraud exposure compared to any other mortgage fraud product or there will be no charge for the measurement time period,” said Tim Grace, senior vice president of Fraud Analytics at First American CoreLogic. “This new release of LoanSafe Fraud Manager incorporates our unique and patented technology and reinforces our clear leadership in the area of mortgage fraud prevention.”
The 2X mortgage fraud 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.
First American CoreLogic plans to migrate its current clients and those of BasePoint Analytics to LoanSafe Fraud Manager, which is part of the new LoanSafe Risk Manager suite, over the next 12 months. In the interim, customers will continue to have access to the legacy versions of FraudMark™ and LoanSafe 2.0.
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.