AGOURA HILLS, CA, October 27, 2009 — Interthinx released its quarterly Mortgage Fraud Risk Report today, covering data collected during the third quarter of 2009. The report, which includes an analysis of the state of mortgage fraud nationally and indices for the four most common types of mortgage fraud, indicates that the overall Interthinx Mortgage Fraud Risk Index surged more than 11 percent from the previous quarter to 145 (n = 100). Interthinx is a leading provider of proven risk mitigation, mortgage fraud prevention, and regulatory compliance tools for the mortgage industry.
The report covers the third quarter of 2009. Major findings include the following:
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.
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 with negative amortization features) — reset between now and the first quarter of 2012.
“The report provides data that lenders can use to anticipate and prepare for trends that will impact their risk mitigation strategies and can ultimately make them more successful at identifying fraud before loans are funded,” said Kevin Coop, president of Interthinx. “Unfortunately, the data do not currently support a positive trend relative to fraud risk. The industry must be vigilant if it hopes to guard against fraud, especially in the area of valuation fraud in the current market.”
“Before this report was available, the industry had no easy way to tell precisely where mortgage fraud was increasing at the greatest rate,” added Mike Zwerner, senior vice president of business development for Interthinx. “The report provides a granular level of detail that provides actionable information to risk managers.”
For more information about the report, visit http://www.Interthinx.com.
Interthinx, Inc., a Verisk Analytics subsidiary, 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 1-800-333-4510.
About Verisk Analytics
Verisk Analytics is a leading provider of risk assessment solutions to professionals in insurance, healthcare, mortgage lending, government, risk management, and human resources. Verisk Analytics includes the holdings of Insurance Services Office, Inc. (ISO) and its subsidiaries, which provide essential solutions to the insurance, mortgage lending, and healthcare markets.