Interthinx, a provider of mortgage fraud prevention tools, has integrated its DISSCO fraud detection and prevention system with Fiserv’s easyLENDER Mortgage loan origination software system.
As a result of this integration, loans originated in easyLENDER Mortgage can be instantly submitted to DISSCO for automatic screening for potential mortgage fraud. easyLENDER is a product of Fiserv Lending Solutions, a unit of financial information management systems and services provider Fiserv Inc.
Mortgage fraud is on the upswing in the United States, with the number of suspicious activity reports to the Federal Bureau of Investigation in 2004 almost triple those in 2003, according to a report the FBI released in May.
According to the Federal Financial Institutions Council, up to 10 percent of all mortgage loan applications in the $3 trillion annual U.S. residential real estate market involve some form of material misrepresentation.
“Mortgage fraud continues to have a negative impact on the industry at large, especially when fraudulent loans make it through to funding. There needs to be an industry-wide collaboration to fight fraud on the front-end before it can do damage on the back-end,” said Kevin Coop, president of Interthinx.
Coop said that fraud detection products like DISCCO, are most effective at mitigating loss when deployed early in the lending process.
“Fiserv Lending Solutions is committed to helping clients detect and stop mortgage fraud at the source, and we are committed to ensuring our partners can make this happen. We provide lenders with quick and complete access to our industry-leading fraud detection system, enabling them to immediately get the information they need to fight fraud,” Coop said.
DISSCO (data integrity search and score system) is an electronic fraud-prevention tool designed to reduce the risk associated with mortgage lending due to fraud.
DISSCO can instantly search hundreds of mortgage-related data fields in a loan record to identify and score the kinds of misinformation, inaccuracies, and inconsistencies that could indicate fraud. DISSCO then produces a detailed report with step-by-step recommendations on how to respond.
“The FBI continues to tell us that mortgage-related fraud is rampant nationwide,” said Dan Welbaum, Fiserv Lending Solutions’ senior vice president of Sales and Marketing, easyLENDER Products. “And Fiserv wants its clients to be able to defeat fraud as early as possible in the lending process.”
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