Mortgage fraud is pervasive and at epidemic proportions. The FBI reports a 1,411% jump in reports of mortgage fraud between 1997 and 2005. Testifying before a Senate committee in December 2006, FBI director Robert S. Mueller III estimated the loss to lending institutions at more than $1 billion a year. Mortgage industry experts believe that a loss of $4-$6 billion is more accurate.

Mortgage fraud is not a victimless financial crime. It destroys neighborhoods. It damages millions of honest, hard working families. It provides funding for narcotics traffickers, gangs and, less frequently, terrorists. Identity theft, inflated property values, use of straw buyers, borrower income, employment and occupancy misrepresentations are just some of the core components used to scam lenders and investors out of billions. This modern form of massive bank-robbery though, can be significantly reduced.

At Interthinx, our commitment is to abate and eliminate the possibility of mortgage fraud for lenders and provides risk assessment tools to investors.

The troubling increase in fraudulent loan originations, the sub prime market meltdown and the current mortgage market “correction” has magnified the need for smarter interception strategies. To manage layered risk effectively, it’s crucial for the financial industry to consider processes, methods, data volume and proven analytics. Many solution providers do not have the technology or data necessary for comprehensive risk mitigation and mortgage fraud prevention. Simply considering components of loan application data is not complete protection. The integration of various technologies and all application information is critical to creating a loss mitigation system that is both accurate and immediate.

Interthinx is the nation’s leading provider of proven risk mitigation, fraud prevention and regulatory compliance tools for the financial industry.