Industry News

Loan fraud prevention tool debuts

FraudGuard spots patterns drawn from large database of loan information

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A new real estate loan fraud detection product for lenders and investors promises to reduce loss due to fraudulent transactions while improving loan quality. Real estate loan fraud cost communities nationwide an estimated $1 billion in 2005, according to the Federal Bureau of Investigation. Interthinx last week announced the launch of FraudGuard, which touts a "holistic approach" that analyzes an entire loan file to uncover fraud in every aspect of the loan application process. "Today's fraudsters are attacking on multiple fronts. Simply considering components of a loan is neither enough nor is it complete protection," said Kevin Coop, president of Interthinx. The new technology is powered by FraudNet, a network of data, pattern-matching analytics, which enables lenders to compare loan application information with data pulled from the proprietary Interthinx National Fraud Protection Database, 1003 (application) data spanning over 10 years, third-party data and internal shared data, ...