Collateral Fraud Detection

BUSINESS BENEFIT SERIES: Mortgage Fraud

Industry:  Mortgage Underwriting and Due Diligence

Problem: Production and quality control managers are at capacity and cannot review all loans. Unfortunately, random sampling is not effective in capturing fraud.

Solution: Use LoanIQ to automatically score all loans for collateral risk. Route the high risk loans to quality control for manual review while expediting low-risk loans through the approval process.

Collateral Fraud Detection:

Automatically identify high-risk loans without increasing production or quality control workload.

Typical Business Process:

In response to the rising incidence of mortgage fraud, many lenders manually review a random sampling of loan applications, followed by a manual review process, to determine whether or not additional due diligence is required to identify high risk loans. Not only does this practice put lenders at risk of funding poor quality loans that were not included in the sample, the high costs and reduced productivity associated with manual quality control can decrease a lender's competitive edge.

Alternative Business Process:

Rather than relying on random sampling and time-consuming manual processing, lenders can use LoanIQ™ to instantly assess collateral valuation risk and market volatility on all loans-not just a sample-in a fraction of the time. With LoanIQ, lenders know which loans require additional due diligence and which can be moved quickly through the system. In addition, quality control and due diligence analysts can access LoanIQ aerial photos and price appreciation graphs to gain insight into loans of questionable quality.

Expected Results:

By instantly identifying high-risk loans, LoanIQ enables lenders to optimize the quality control analysts' time with a high degree of confidence that they're reviewing the right loans. When lenders know where to apply additional due diligence they can maximize resources by allowing managers and analysts to focus their time solely on the highest risk loans, which increases overall productivity and improves borrower satisfaction while saving time and lowering overall per-loan costs.