BasePoint Analyticsâ„¢, a leading provider of scientific mortgage fraud analytics and consulting services, has announced that Aegis Mortgage Corporation has chosen BasePoint FraudMarkâ„¢ for Origination. This is a key component of Aegis Mortgage Corporation’s mortgage fraud and risk management program. During the first two months of production at Aegis Mortgage Corporation, FraudMark has been able to identify suspicious loans, which enabled the lender to quickly and effectively confirm fraudulent applications and stop them before funding the loan.

FraudMark is the only mortgage fraud technology solution in the mortgage market right now that utilizes predictive analytic models similar to those used in the credit card industry to catch mortgage fraud. These predictive analytic models accurately predict the likelihood of a loan containing mortgage fraud that could result in financial loss to the financial lender.

One of the biggest advantages to analytic technology in fighting mortgage fraud is its low false positive ratio. This means that lenders like Aegis Mortgage Corporation have many fewer applications to review to identify and confirm mortgage fraud. FraudMark’s first two months of performance has exceeded Aegis Mortgage Corporation’s expectations both in terms of volume and the amount of mortgage fraud caught, as well as low false positive rates. Prior to the introduction of FraudMark, financial lenders have relied on a variety of tools including database verification to detect mortgage fraud. While database verification serves an important purpose in confirming mortgage fraud, using it by itself results in extremely high false positive rates. This places an unnecessary burden on the loan review process.

“During the past year, mortgage lenders as a whole have experienced higher mortgage fraud loss rates, repurchase rates and broker-facilitated mortgage fraud. In an effort to stay ahead of the curve, Aegis continually pursues the most advanced solutions to help minimize our losses from mortgage fraud,” said Barbara Mallott, senior vice president and director of Quality Assurance for Aegis Mortgage Corporation. “After an initial trial with FraudMark, we instantly saw this solution was more accurate in identifying suspicious loans than other technology on the market. We look forward to higher levels of productivity and accelerating the funding of good loans.”

“Aegis Mortgage Corporation’s proactive approach to solving mortgage fraud positions itself as a leader in mortgage fraud and risk management,” said Tim Grace, president and CEO of BasePoint. “Aegis Mortgage Corporation is one of the early adopters of predictive analytic technology that is destined to become the industry standard.”

BasePoint’s FraudMark uses a patent-pending statistical pattern recognition technology. This technology combines two unique and highly effective approaches for finding mortgage fraud: 1) behavior trends for entities involved in the mortgage transaction, such as applicants and brokers, and 2) historical patterns of activity and information for both fraudulent and non-fraudulent loan applications. Financial lenders have prevented more than $650 million in fraudulent mortgage loans since the solution was launched nearly one year ago.

FraudMark gives financial lenders the ability to review and verify only the riskiest loans, allowing the majority of home loans to be quickly and securely funded. This is a significant advantage over traditional data verification tools. FraudMark provides a much higher degree of predictive power, precisely identifying which loans that have the greatest risk of mortgage fraud. FraudMark helps mortgage lenders cost-effectively identify suspect loan applications before funding.

Aegis Mortgage Corporation, headquartered in Houston, Texas, is one of the top 40 mortgage lenders in the United States. With loan production of $19.6 billion in 2005, the company works directly with consumers and through a strong network of independent brokers.

About BasePoint
BasePoint Analytics, based in Carlsbad, California offers a unique combination of scientific mortgage fraud scoring software and expert services. Using sophisticated predictive analytics, BasePoint enables global banks and high volume mortgage lenders to quickly identify fraudulent transactions early in the process, minimizing mortgage fraud loss while accelerating the processing of non-fraudulent transactions. The company’s mortgage fraud experts have deep, real-world domain expertise and have successfully solved mortgage fraud for some of the highest profile banks and lending institutions in the world. BasePoint’s industry-leading customers include: New Century Mortgage, Aegis Mortgage Corporation, MasterCard Worldwide and several top 20 global banks. In addition, the company has strategically partnered with First American Real Estate Solutions. For more information about BasePoint, visit www.basepointanalytics.com or call 760.602.4971.