First American CoreLogic's Newest Advanced Fraud Detection Solution Implemented by Top Lender
—Mortgage Industry Leaders Combating Mortgage Fraud with Technology—
April 6, 2010, 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 Wells Fargo, the industry’s top mortgage originator, is implementing First American CoreLogic’s LoanSafe® Fraud Manager.
LoanSafe Fraud Manager is the mortgage industry’s most advanced fraud prevention technology solution designed to address the needs of lenders seeking to minimize loss from fraud and increase operational efficiency. In addition to the implementation at Wells Fargo, LoanSafe Fraud Manager is now in active evaluation with 10 other lenders, signaling significant market momentum for the solution and continued lender focus on solving the mortgage fraud problem.
“At Wells Fargo, we are committed to partnering with thought leaders in fraud prevention, like First American CoreLogic, to develop solutions to deter future fraud schemes,” said Mike Heid, co-president of Wells Fargo Home Mortgage.
LoanSafe Fraud Manager combines pattern recognition technology with the nation’s largest and most comprehensive property, loan and mortgage fraud data and provides a risk score. First American CoreLogic fraud scientists have created patented fraud models that assign each loan a fraud risk score spanning from one (lowest risk) to 999 (highest risk). The loan-level score has been proven to identify potential fraud with the industry’s highest level of accuracy. By using these scores, lenders can realize revenue increases through quicker and more efficient underwriting and increase revenue by reducing default and foreclosure-related losses associated with fraud. LoanSafe Fraud Manager dramatically reduces false positives and allows lenders to review only the highest risk loans prior to funding.
LoanSafe Fraud Manager now also offers improved reporting with more loan information categories displayed and alerts grouped by likely fraud types. Additionally, this new fraud detection solution offers more input fields for greater functionality and tracking.
“LoanSafe Fraud Manager offers three important economic benefits critical to lenders today: cost reduction, cost avoidance and revenue increase,” said Tim Grace, senior vice president of Fraud Analytics at First American CoreLogic. “We’ve listened closely to our consortium members—which include representatives from the top 10 mortgage lenders—in developing this game-changing technology. LoanSafe Fraud Manager’s advanced analytic technology, coupled with First American’s unmatched borrower, property and asset information make old methods of fraud detection obsolete and lenders recognize this.”
Lenders using LoanSafe Fraud Manager are further assured by the First American CoreLogic 2X guarantee, which promises that lenders will save twice as much in fraud losses as they did prior to using LoanSafe Fraud Manager and the savings will be at least twice as much as the cost of the solution.
Key to LoanSafe Fraud Manager’s effectiveness is the First American CoreLogic Mortgage Fraud Consortium whose members contribute to the largest central repository of application and transaction data in the mortgage industry. The database includes more than 80 million loan applications, or 65 percent of all loan applications annually, and more than 200 million records from servicing data files. Predictive models are created from the Consortium’s data and used in LoanSafe Fraud Manager. It is the only mortgage fraud consortium of its size that is member driven and governed, and does not charge a participation fee. Additional Mortgage Fraud Consortium member benefits include 24/7 data availability, unlimited database access and exclusive access to specific alert analysis.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, is the largest U.S. provider of real estate, property, ownership, fraud, mortgage and mortgage securities data—and advanced analytics using this data—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 total revenues of approximately $6.0 billion in 2009, 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.