""First American CoreLogic"":http://www.facorelogic.com/, a Santa Ana, California-based provider of advanced property and ownership information, analytics, and services, announced Tuesday[IMAGE]
that it has joined forces with ""The Prieston Group"":http://www.priestongroup.com/app/public/ (TPG) to offer a comprehensive fraud prevention and insurance solution to mortgage lenders.
The new solution combines First American CoreLogic's pattern-recognition fraud tool with TPG's risk management services, indemnity programs, and training.
""Fraud is a $13 billion problem for the lending and investor communities,"" said Tim Grace, SVP of fraud solutions at First American CoreLogic. ""Lenders throughout the United States already use our tools to successfully detect and prevent fraud. This relationship with TPG will offer lenders additional services and enable them to qualify for loan-repurchase insurance.""
TPG, founded in 1986 and based in Novato, California, says it was the first company in the United States to offer[COLUMN_BREAK]
insurance covering repurchase losses due to mortgage fraud and material financial inaccuracy. To date, TPG has written fraud insurance coverage on more than 1 million loans. In addition, the company provides training and consulting services designed to minimize fraud risk and uses a patented lender-rating system to quantify the risk embedded in a lender's underwriting, quality control, and review practices.
Through this new partnership, TPG will help lenders establish business rules and guidelines and employ the First American CoreLogic LoanSafe Fraud Manager to enforce those policies in the lender's daily operations. This comprehensive anti-fraud tool integrates patented pattern-recognition technology with a comprehensive property and fraud database. In retrospective head-to-head testing, LoanSafe Fraud Manager detected twice as much fraud as any other fraud provider and did so with very low false positive rates, First American CoreLogic said.
Lenders who use this joint solution will be insured against fraud losses by ""Lloyd's of London"":http://www.lloyds.com/, which has a special relationship with TPG.
""This partnership will help lenders focus on best practices, products, and processes and provide enterprise- and loan-level metrics to measure results,"" said Arthur Prieston, chairman of TPG. ""Our new joint effort will improve loan quality and rebuild confidence levels among lenders and investors. It's a win-win for everyone except fraud perpetrators.""