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Special Reports
Mortgage Fraud
Hunting Down Trouble at the Start
By Jennifer Harmon
COSTA MESA, CA--Experian's fraud detection and prevention team is offering the
Hunter fraud detection product, which finds fraudsters at the point of entry - the application - and seeks to stop
them before they become customers.
Hunter detects fraud at the mortgage application stage using a variety of rules-based
logic and linkage technology to provide the best defense against fraud.
For 10 years, Hunter has consistently increased operational efficiencies and reduced
fraud losses for all of the top 30 mortgage lenders in the United Kingdom. Beyond helping clients defend against
mortgage fraud, Hunter is currently the leading application fraud detection product in the United Kingdom. Experian
brought it to the U.S. late last year.
Hunter leverages application data to track, link and manage fraud detection. It
has the flexibility to incorporate shared and third-party data to further build up the defense against fraudulent
mortgage applications. Through validation, cross-referencing and a Web-based case management system, Hunter creates
a virtual web of defense to prevent fraudsters from becoming customers. The product provides a comprehensive defense
against fraudsters, allowing decisions to be made faster, mortgages approved quicker and revenues recognized sooner.
In a Hunter scenario, an application is screened for anomalies according to a
customer-specific rules palette. Hunter uses logic-based algorithms to check for inconsistencies against previous
applications within an organization, and potentially, information and fraud outcomes shared across institutions.
The logic and cross-referencing can detect specific fraud types such as fraudulent loans attributed and linked
to specific brokers and appraisers - as well as individual data manipulation and fraud rings. This information
is then compiled within the Hunter case management system, which streamlines the workflow associated with review,
investigation and recording of the outcomes.
Special Agent Karen Spangenberg, chief of the Financial Crimes Section of the
FBI's Criminal Investigative Division, said the FBI has a working group of 24 financial organizations addressing
the mortgage fraud issue. "We are fortunate that the FBI has a wonderful relationship with many members of
the financial industry from whom they receive expedited information about potential fraud," she said.
The FBI is collaborating with the mortgage industry and the Financial Crimes Enforcement
Network to create a more productive reporting requirement for mortgage fraud. They have also been working with
FinCEN to promote an efficient and effective method of identifying and reporting fraudulent mortgage activity affecting
non-federally insured mortgage institutions.
Also regarding the topic of mortgage fraud and Experian, Fidelity National Title
Group - a provider of title insurance, specialty insurance and claims management services in Jacksonville, Fla.
- has unveiled a new product offering that aims to help its customers protect against mortgage fraud.
The new partnership with Experian Consumer Direct will offer customers one year
of credit monitoring, fraud resolution assistance and a credit report at no cost.
"We recognize that mortgage fraud and identity theft are a growing concern
not only for our industry, but for our customers as well," said Randy Quirk, co-president of Fidelity National
Financial. "Our business is protecting the largest financial transaction most Americans make in their lives
- buying a house. Now, when our customers purchase title insurance from participating locations of our companies
- Fidelity National Title, Chicago Title, Ticor Title, Security Union Title or Alamo Title - they will receive
a one-year membership to Experian Consumer Direct's CreditCheck Basic at no cost."
Fidelity National Title Group's offering is the first of its kind in the title
insurance industry, providing customers with daily monitoring of their Experian credit report, an Experian credit
report delivered online and e-mail alert notifications to inform them of key changes to their Experian credit report
including new inquiries, newly opened accounts, delinquencies, address change and public record items. Toll-free
support from fraud resolution representatives and educational information also are included in the year-long credit
monitoring membership.
"Consumers are often most at risk for identity theft after a big transaction
- such as buying or refinancing a house," continued the FNF co-president. "Every day, our title insurance
providers are doing all they can to combat real-estate fraud. Our products protect a homeowner's future by insuring
the ownership of their home. It was a natural fit for us to partner with Experian to provide our customers with
a reliable product to continue monitoring their credit after the transaction, empowering them to further protect
their identity and investment."
Ty Taylor, president of Experian Consumer Direct said, "Our credit monitoring
products give consumers peace of mind knowing that we monitor their credit report on a daily basis and will alert
them of any key changes that could be a result of fraud or identity theft."
Fidelity National Title Group in late June was planning to roll out this offering
to California and Texas, quickly followed by expansion in the states where Fidelity National Title Group companies
offer title insurance.
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