First American CoreLogic Touts $40 Million in Fraud Prevention
First American CoreLogic said Tuesday that its Multi-Closing Alert Program prevented more than $40 million dollars in residential mortgage fraud losses for institutional participants during the first year of the program. The Multi-Closing Alert Program is a service that helps banks and lending institutions identify and stop multi-lien fraud, otherwise known as "shotgun" fraud. Multi-lien fraud involves schemes to apply and close on multiple loans against a single residential property within a short time period, and CoreLogic said it has caught and prevented more than 230 such cases through the program. The program helps lenders identify instances where multiple equity loan applications and pending closing activity exist on an individual residential property across participating institutions, and then alerts clients through daily electronic notifications. The Multi-Closing Alert Program currently serves nine of the largest residential lending institutions, the company said, representing more than half of the equity lending market. "This type of fraud adds up quickly because an individual can extract an amount several times the value of an individual property," said George Livermore, chief executive officer for First American CoreLogic. For more information, visit http://www.corelogic.com.