FraudGUARD Supports Lender Compliance with New Fannie Mae Guidelines

Interthinx tool assists lenders with Loan Quality Initiative (LQI) program and new requirements

AGOURA HILLS, CA, May 12, 2010 — After careful study of Fannie Mae’s new Loan Quality Initiative (LQI) outlined in Lender Letter LL 2010 03, Interthinx has concluded that its proven loan-level fraud risk tool, FraudGUARD®, can assist lenders in complying with Fannie Mae’s expanded guidelines. Interthinx is a leading provider of proven risk mitigation, mortgage fraud prevention, and regulatory compliance tools for the mortgage industry.

In its letter to lenders, Fannie Mae noted the increase in loan repurchase requests to lenders over the past three years. The GSE (Government Sponsored Enterprise) decided to enhance underwriting and eligibility guidelines through its Loan Quality Initiative (LQI) to help ensure compliance with loan delivery requirements. The additional rules will require lenders to meet stringent new guidelines.  FraudGUARD can automate much of the process.

“The LQI requires lenders to validate borrower identity, Social Security numbers, undisclosed liabilities, and inclusion on the GSA [U.S. General Services Administration] or HUD [Department of Housing and Urban Development] excluded-party lists,” said Gayle Shank, vice president of product development for Interthinx. “More than 50 alerts within FraudGUARD can help lenders comply with those requirements and reduce the potential for a repurchase request. For example, in the area of undisclosed liabilities, FraudGUARD has made it easier for lenders to quickly scan the industry for additional loans secured — or in the process of being secured — by the same borrower or property. Without an automated tool like FraudGUARD, it is nearly impossible to detect undisclosed properties or a borrower’s intent to mislead a lender regarding occupancy.”

“Fannie Mae’s game-changing move establishes a new set of rules to identify and implement policy, process, and technology enhancements to mitigate repurchase risk,” said Kevin Coop, president of Interthinx. “FraudGUARD will help lenders focus on critical prefunding loan data validation now required by Fannie Mae. It will also help lenders originate higher-quality loans as we work together to maintain market stability and reduce risk in both the primary and secondary markets. This is a positive step for the entire industry, and Interthinx is ready to provide support to lenders as they prepare for the June 1, 2010, compliance deadline.”

About Interthinx
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 assess risk and prevent mortgage fraud and compliance violations. More than 1,100 customers — including 14 of the top 20 mortgage lenders — 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 or call 1-800-333-4510.

Release: Immediate

Rick Grant
Telephone: 800-979-9049
Cell: 570-497-1026

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