A Carlsbad, Calif.-based company is offering a new fraud detection product for mortgage lenders, investment banks and due diligence firms.
BasePoint Analytics, a provider of fraud analytics and fraud consulting services, today released FraudMark, combining two approaches for finding fraud. The model is based on behavioral trends for applicants, brokers and appraisers as well as historical patterns of both fraudulent and non-fraudulent loan applications.
FraudMark also includes model performance reports that indicate how many fraud applications will be detected at each score level, the false positive at each score level, as well as the number of applications anticipated to score within each score level. Lenders can set and change staffing, real-time decision criteria, and risk tolerance levels based on their individual risk management and production goals.
Lenders can score all applications at multiple times during the loan origination process as additional information is accumulated. When combined with industry best practices in loan review processes and strategies, underwriters and risk managers now have the ability to review and verify only the highest-scoring loans.
BasePoint Analytics also provides initial fraud assessments to help lenders understand historical fraud loss rates as well as current risk exposure. Fraud managers who were previously employed by companies such as Wells Fargo, Bank of America, Capital One, Providian and Visa International show lenders opportunities for loss reduction, metrics for measuring fraud initiatives and solutions, as well as best practice fraud review processes and strategies.
The services aim to help lenders understand their fraud reduction opportunities and overall return on investment. During the product implementation, these same fraud experts work onsite with lenders to help design fraud prevention organizations and best practice loan review processes and strategies.
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