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August 24, 2007
First American CoreLogic Debuts Multi-Closing Alert Program
According to First American CoreLogic, cooperation between lenders and technological links “is key to minimizing damage from criminals gaming the system.” The company said the term “shotgunning” is being used more frequently. The term refers to a situation in which a perpetrator applies for home equity loans from multiple lenders using a single piece of collateral. By the time the con leaves the scene, the “borrower” has extracted several loan payouts.
In response to the problem, the company introduced its Multi-Closing Alert Program early this year. First American CoreLogic said the newly emerging fraud scheme identifies perpetrators applying simultaneously for loans. Participating lenders send daily batch files containing loan closing activity. The program analyzes the files, rapidly identifies multi-closing scenarios and returns daily results to lenders. The program alerted lenders to more than $3.5 million of potential loss within its first few months.
Posted by S. Germain at August 24, 2007 08:17 AM