Verification Tools Designed To Combat Fraud Problem.

While it may be difficult to quantify the losses caused by fraud in the mortgage industry, it's easy to see why lenders want to avoid it. Some new tools are now available to make that easier to do.

Experian has released the second generation of its business data authentication tool, AuthoriCheck. Designed to combat application fraud losses, the information cross-check tool determines the accuracy of customer-provided application data and identifies potential fraud.

"Doing business is full of risk in today's global economy where often you never actually meet your customer in person," said Roger H. Lisabeth, vice president and general manager of Experian's Business Information Services unit. "Assessing the accuracy of customer information is the crucial first step in forming any new business relationship."

The tool is primary for use by firms that offer credit in the B2B space and offers a historical database that will determine whether application information differs from previous applications made by the same party.

Meanwhile, Oxford, Miss.-based FNC Inc. has formed an alliance with AppIntell (formerly known as City Asset Management Inc.), a provider of loan application and appraisal fraud services. The alliance will give FNC's clients online access to AppIntell's FRADAR product, which stands for FRAud Desktop Appraisal Review.

FNC's collateral management system automates appraisal and other collateral services for real estate lenders. AppIntell's FRADAR analyzes appraisal data fields, retrieves data from database sources and scores data inconsistencies relative to fraud variance profiles developed from AppIntell's fraud investigation experience. The company has provided fraud training to the FBI, Secret Service, investor agencies and numerous lenders.

These tools are expected to cut down on a problem that some say costs the industry $30 billion a year. According to Jim Croft, executive director of ...