BasePoint Analytics, a leading provider of scientific fraud analytics and consulting services, announced Wednesday that it launched FraudMark for Investment Banking, statistical pattern recognition software designed to assess mortgage fraud risk. BasePoint said FraudMark uses sophisticated analytic scoring technology to identify suspicious mortgage loans, enabling investment banks and due diligence firms to score and identify each loan's fraud risk before it is purchased, during the bid tape selection or due diligence review process. “Investment banks are actively seeking solutions that improve upon data verification tools to accurately identify those loans with the greatest risk of financial loss due to fraud,� said Tim Grace, president and CEO of BasePoint Analytics. “The analytic advancements of FraudMark now enable investment banks and due diligence firms to go beyond traditional fraud management tools and processes and cost-effectively score loans to understand true fraud risk at the individual loan and portfolio pool levels. During the loan purchase transaction process FraudMark quickly and accurately predicts which loans and pools of loans have the highest risk of fraud.� FraudMark uses patent-pending pattern recognition technology to find fraud based on historical patterns of both fraudulent and non-fraudulent loan applications. BasePoint said these models can accurately predict the likelihood of a loan containing fraud that will result in financial loss to the lender or investor. Using limited bid tape data, FraudMark automatically assesses the fraud risk in a total pool of loans available for sale, as well as identifying the fraud risk of individual loans so that those with the highest associated fraud risk can be selected for further investigation during the due diligence process. BasePoint said FraudMark is designed as a complementary product to existing credit and compliance risk tools, addressing fraud risk during the trading process. To date, lenders using FraudMark have prevented the funding of nearly $1 billion in suspicious loans. For more information, visit http://www.basepointnanalytics.com.