Industry Titan Interthinx Integrates MERS Data to Enhance Automated Fraud Detection

January 1, 2011 / 3 min read

Addition of MERS transaction data helps protect lenders from shotgunning

AGOURA HILLS, CA, June 24, 2008 — Interthinx®, Inc., the leading provider of proven risk mitigation, mortgage fraud prevention, and regulatory compliance tools for the mortgage industry, has integrated MERS (Mortgage Electronic Registration Systems, Inc) data into its proven FraudGUARD® scoring system to detect undisclosed properties, reveal investors claiming owner occupancy, and uncover recently closed loans that could indicate a borrower’s intent to commit mortgage fraud.

“’Shotgunning’ is a simultaneous closing scheme that occurs when a borrower takes out multiple loans on the same property,” stated Connie Wilson, executive vice president of Interthinx. “It can easily go undetected when lenders cannot quickly search for loans associated with the borrower or subject property. This new feature allows FraudGUARD users to automatically access the MERS database of registered real-estate transactions to conduct such searches during the FraudGUARD scoring process for automated detection of potential fraud before funding a loan.”

“Our integration of MERS data enables our customers to detect undisclosed loans associated with the borrower that could also skew debt-to-income ratios and cause lenders to misprice loans,” added Mike Zwerner, senior vice president of business development and marketing at Interthinx. “This integration, available through FraudGUARD at no cost to our customers, contributes to their operational efficiency, process consistency, and bottom line.”

“MERS is committed to working with Interthinx to fight the onslaught of multiple application mortgage fraud,” stated Dan McLaughlin, executive vice president of MERS. “Having the MERS loan-registration information available through FraudGUARD from Interthinx, presents a powerful solution for lenders looking for new weaponry in this environment of epidemic mortgage fraud.”

About MERS
MERS is an electronic loan registry created by the real estate finance industry to eliminate assignments when trading mortgage loans. Borrowers name MERS as mortgagee and nominee for the lender on deeds of trust and mortgages that are recorded in the county land records. Lenders then register the loans on the MERS® System and electronically track changes in servicing and beneficial ownership rights over the life of the loan. Loans registered with MERS are inoculated against future assignments because MERS remains the mortgagee of record no matter how often servicing is traded between MERS members. Fannie Mae, Freddie Mac, VA, FHA, Ginnie Mae, the Federal Home Loan Bank MPF®, California and New York housing authorities, and all major Wall Street rating agencies have approved MERS. To learn more about MERS, call 1-800-646-MERS (6377) or visit www.mersinc.org.

About Interthinx
Interthinx, Inc., an ISO business, is the nation’s leading provider of proven risk mitigation and regulatory compliance tools for the financial services industry. Used at every point in the mortgage lifecycle to prevent mortgage fraud, compliance violations and to assess risk, Interthinx is relied upon by more than 1,100 customers, including 15 of the top 20 mortgage lenders and three of the top five largest financial institutions. With technology that earned Mortgage Technology Magazine’s prestigious 10X Award as “a diagnostic and corrective solution of the highest order,” Interthinx expertise in predictive analytics, data mining, and risk scoring 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 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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Contact:
Ron Demeter (for MWW)
(213) 486-6560 x315