Mortgage fraud, in all its forms, was down in 2020 and has been for much of the past decade. However, market dynamics, changing workforce demographics and more sophisticated fraud schemes, such as synthetic identity, all point to a heightened risk for fraud. These were a few of the major observations in our new HousingWire white paper—Fraud is Changing and So Must Fraud Detection—that
examines the market conditions and takes a deep dive into the latest technology advances that are combatting fraud and enhancing efficiency for lenders.
Housing market conditions are changing in ways that may increase fraud risk and fraud schemes are becoming increasingly sophisticated, with fraudsters falsifying employment, income, property occupancy and identities. The ingredients are all there: the mortgage market is shifting from refinance to purchase, adding more potential for fraud; low rates and tight inventory are pushing up average home prices at a double-digit, year-over-year pace and the size of the average mortgage hit a new high this year.
In addition to confronting fraud schemes of growing complexity, lenders face the difficult challenge of balancing effective risk management with operational efficiency. This balance becomes increasingly challenging to maintain for large volume lenders.
The AppIntelligence Score™ is the newest fraud solution from First American Data & Analytics that brings to bear a whole new analytics-driven approach to mortgage fraud detection. The AppIntelligence Score utilizes the company’s proprietary predictive fraud indices, employing both natural and artificial intelligence and is designed to overlay workflow alerts. It simultaneously runs proprietary models and sub-models to measure risk factors including undisclosed debt, synthetic identity, income, employment, early payment default (EPD), and loan participant risk review. Read more by downloading the full whitepaper or visit our fraud solutions page to discover how we can help protect you.