Pattern Recognition Combats Mortgage Fraud

On October 18 BasePoint Analytics announced the availability of its new service PatternWatch, a program developed to combat the growing multi-billion dollar epidemic of mortgage fraud in the United States.

Utilizing link analysis software and the company's proven expertise in fraud detection, the PatternWatch system will analyze historical data and loans currently being funded to identify covert and organized fraud schemes.

PatternWatch is actually part of a software suite and attendant consulting services geared toward bringing cutting edge fraud solutions to the American mortgage industry. The hope is that through pattern recognition software paired with the services of fraud data analysts, suspicious loans can be stopped before actual financial losses are incurred.

The president and CEO of BasePoint, Tim Grace, said, "By leveraging BasePoint's pattern recognition software and fraud detection expertise, lenders have yet another weapon in their arsenal to protect their customers and investors from mortgage fraud. Some clients have achieved millions of dollars of savings within the first week of using PatternWatch. Discovery of a single fraud trend has provided payback for the service instantly."

In the last twelve months BasePoint's flagship product, FraudMark, has helped the mortgage industry score loan applications in real time and drive down fraud losses for an overall fraud reduction of more than $600 million.

One early adaptor of PatternWatch immediately identified a dozen loans valued at $3 million that shared a single, fraudulent employer. In a second case some 35 loans totaling in excess of $8 million were identified with false income and employment data.

Customers for the company's anti-fraud services include New Century Mortgage, Aegis Funding Corporation, and MasterCard World Wide. BasePoint Analytics is based in Carlsbad, California.