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Fraud Mitigation

When a borrower takes out multiple loans on the same property, the lender can be left holding the bag if they don’t discover the fraud in time to mitigate the risk. How can lenders protect themselves? eLynx’s eCN SAM module can detect this type of fraud, also known as shotgunning, and can alert a lender when another loan is in process at a different lending institution.

 

eLynx’s broad footprint in the mortgage industry puts the company in a unique position to help lenders with multiple lien fraud.  The real-time alert service built in the eCN SAM module:

  • has unrivaled timeliness based on an extensive data footprint
  • is seamlessly integrated with existing business and closing processes
  • is based on core fraud detection algorithms that can be  configured to a lender’s unique fraud parameters and settings
  • allows lenders to specify  various thresholds of fraud severity enabling lenders to prioritize fraud investigations
  • is available as part of the eCN SAM module

There are a number of ways multi-lien fraud alerts can help a lender, including:

  • Detection of fraud indicators with no impact on existing workflow.
  • Alerts early enough that lenders can proactively prevent a loss (prior to closing documents and disbursements for settlement).
  • Continuous monitoring of closing transactions as they post and analysis of newly posted packages against historical data (preserve investment).
  • Automated email alerts to individuals and/or integration with a lender’s loan or fraud systems to increase visibility.

 

 

  1. Lenders can sign up for multi-lien fraud alerts as part of their eCN SAM service from eLynx.  
  2. Data from closing packages sent by participating lenders through eCN SAM module is extracted and analyzed against historical closing data from other participating lenders.  
  3. When potentially fraudulent activity is detected, participating customers receive email and/or xml status files that notify them of the suspicious activity.  
  4. Lenders can configure business rules to control the types of alerts they will receive and the conditions under which alerts will be generated.