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Release: Immediate
Contact:
Rick Grant
Telephone: 800-979-9049
Email:
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Interthinx® Analytics Team Unveils New National Mortgage Fraud Risk Index
— New report provides a national mortgage fraud index and shows where fraud risk is rising —
AGOURA HILLS, CA, August 25, 2009 — Interthinx®
has unveiled a new quarterly report that includes an analysis of the
state of mortgage fraud nationally as well as indices for the four most
common types of mortgage fraud. The Interthinx Mortgage Fraud Risk Report
provides analysis and detailed information on the state of mortgage
industry that has not previously been available. Interthinx is a
leading provider of proven risk mitigation, mortgage fraud prevention,
and regulatory compliance tools for the mortgage industry.
The report covers the second quarter of 2009. Major findings include the following:
- Fraud
risk — especially valuation fraud — occurs in any market with pricing
volatility, whether home prices are rising or falling.
- Fraud
risk is a leading indicator of foreclosure risk, which suggests that
the nation’s hottest fraud spots today are likely to be the leading
foreclosure Metropolitan Statistical Areas (MSAs) within two years.
- Interthinx
analysts expect fraud indices will continue to rise over the next three
years as a large number of adjustable rate mortgage loans — especially
option Adjustable Rate Mortgages (ARMs negative amortization) — reset
between now and the first quarter of 2012.
- The national fraud index is now 130 (n= 100), a 7 percent increase from the second quarter of 2008.
- Valuation fraud is currently the most common type of fraud perpetrated against the industry.
The full report is available at http://www.interthinx.com/overview/fraud_reports.php. The Interthinx Mortgage Fraud Risk Report was created by the new Interthinx analytics team,
composed of seven experienced professionals, four of whom hold Ph.D.s.
Interthinx established the new unit to provide deeper insight into the
extensive pool of data the company amasses from the industry’s use of
its FraudGUARD® loan-level fraud detection tool.
“The
industry is well aware that mortgage fraud is a growing problem. But
before this report was available, there was no easy way to tell
precisely where it was increasing at the greatest rate,” said Kevin
Coop, president of Interthinx. “The professional team we now have in
place gives us the ability to develop very granular detail to shed
light on a serious area of concern and provide actionable information
for our customers.”
“In
the letter we sent to Capitol Hill earlier this year, we made it clear
that the economic and foreclosure crises will not end until the quality
of loan originations is assured,” Coop added. “We have the technology
to stop mortgage fraud prior to the funding of loans, and we now have
very specific data to show where the problems are concentrated. This
report shows where the tools are being used, and where fraud continues
to thrive.”
About Interthinx
Interthinx, Inc., an ISO business, is a leading national provider of
proven risk mitigation and regulatory compliance tools for the
financial services industry. At every point in the mortgage life cycle,
Interthinx helps to assess risk and prevent mortgage fraud and
compliance violations. More than 1,100 customers — including 15 of the
top 20 mortgage lenders and three of the top five largest financial
institutions — employ the company’s products and services. Interthinx earned Mortgage Technology
magazine’s prestigious 10X Award as “a diagnostic and corrective
solution of the highest order,” for its technological expertise in
predictive analytics, data mining, and risk scoring. The Interthinx
suite of solutions sets the standard for the industry and directly
increases the value of client portfolios. For more information, visit www.interthinx.com or call (800) 333-4510.
About ISO
A
leading source of information about risk, ISO provides data, analytics,
and decision-support services to professionals in many fields,
including insurance, finance, real estate, health services, government,
human resources, and risk management. Using advanced technologies to
collect, analyze, develop, and deliver information, ISO helps customers
evaluate and manage risk. The company draws on vast expertise in
actuarial science, insurance coverages, fire protection, fraud
prevention, catastrophe and weather risk, predictive modeling, data
management, economic forecasting, social and technological trends, and
many other fields. To meet the needs of diverse clients, ISO employs an
experienced staff of business and technical specialists, analysts, and
certified professionals. In the United States and around the world, ISO
helps customers protect people, property, and financial assets.
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