Industry News

New technology identifies mortgage fraud

BasePoint Analytics launches FraudMark

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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 accumula...