Multi-Closing Alert Program

Preventing Multi-lien Fraud

  download the Multi-Closing Alert sheet

Mortgage fraud perpetrators often use their in-depth knowledge of the lending process to uncover lender process vulnerabilities where originators may not have adequate protection. Multi-lien, or “shotgunning” fraud is on the rise, targeting equity lending, where borrowers can apply for multiple loans or lines in a short time period, and an individual lender has limited tools to expose the full scope of the borrower’s activity.

First American CoreLogic created the Multi-Closing Alert Program to help originators unite their efforts to defend against this type of costly fraud. Participating lenders submit daily batch files with loan closing activity. First American CoreLogic analyzes the daily files and identifies scenarios where multiple lenders are moving to close on the same property. Participants receive daily notification indicating the results of the analysis. In the event that multi-lien activity is detected, the relevant lenders are notified with the pertinent loan level detail, as well as the relevant contact information for the participants involved.

Lenders are also invited to a monthly user forum facilitated by First American CoreLogic to share best practices in fraud detection. In the first few months of the program, over $3.5 million of potential loss was identified.

 

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