Flagstar Bank, a leading mortgage lender and national leader in the wholesale mortgage business, has integrated fraud prevention tools from Interthinx, the leading provider of comprehensive fraud prevention and decision support tools for the mortgage industry and an ISO business.
Interthinx products DISSCO and ValVerify will serve as the leading components of the Flagstar Bank mortgage fraud prevention system.
"Integrating the DISSCO and ValVerify fraud detection tools moves us closer to our goal of providing an ultra fast underwriting decision while simultaneously enhancing our fraud detection capabilities," said Marni Scott, senior vice president of underwriting at Flagstar Bancorp. "The integration allows us to seamlessly capture the DISSCO and Value Verify red flag alerts and data directly into our system at the time underwriters are reviewing the loan files. That helps us streamline the overall process of ensuring a quality loan. Plus, for our wholesale customers, Flagstar now offers additional protection from fraudulent transactions and the repurchase risk associated with fraudulent transactions," Scott said.
DISSCO is an electronic fraud-prevention tool designed to reduce the risk associated with mortgage lending due to fraud. It can instantly search hundreds of mortgage-related data fields in a loan record to identify and score the kinds of misinformation, inaccuracies and inconsistencies that could signal fraud. DISSCO then produces a detailed report with step-by-step recommendations for lenders on how to respond. ValVerify utilizes the most comprehensive data set in the industry, including property characteristics, borrower data, employer information and other critical elements to produce a reliable and comprehensive property score for valuation and flip analysis.
"Flagstar is an outstanding example of how the mortgage industry is poised to unravel fraud schemes by empowering all participants to identify and respond to red flags produced by automated fraud detection," said Kevin Coop, president of Interthinx. "Combining DISSCO and ValVerify as an integrated value solution enables Flagstar to help its lenders protect themselves by reconfirming a property's collateral value and its risk potential."