A new program is being advertised to help lenders detect potential fraud in home equity lines of credit / loans. A press release for the FraudMark software claims that it can identify up to 60% of fraudulent loans by reviewing 10% of the total applications.

“BasePoint Analytics(TM), a leading provider of scientific fraud and risk analytic scoring solutions, today announced the availability of FraudMark(R) for Home Equity, the industry’s only fraud detection solution designed to address the home equity market, enabling lenders to fund loans with confidence…

The FraudMark for Home Equity solution applies BasePoint’s proven pattern recognition analytics to new loan applications, enabling lenders to focus investigation on the most risky applications before spending resources for underwriting and external verifications.”

This program may help lenders avoid awarding bad home equity lines in the future. However, it seems that the current problem of poor performing home equity portfolios has more to do with lax lending standards and dishonest brokers rather than borrowers trying to trick the system.

See Also:

Is a HELOC Right for You?

How to Qualify for a HELOC

HELOC Loan-to-Value Ratio Requirements Get Tough

Tags | Heloc, heloc fraud, HELOC Lenders, home equity line of credit, lending standards