With its fraud screening component, the HQ FraudID report searches over 70 potential risk indicators to determine the level of risk associated with each potential borrower. This includes multiple verifications of the borrower(s) name, address, social security number, phone number, as well as other pertinent information. The results of the verifications are summarized and assigned an Identity Fraud Score, which indicates the severity of risk factors detected for identity theft, intentional misrepresentation, fraud, or elevated credit risks.
In addition to providing the risk indicating scores, each HQ FraudID report provides details regarding the risk indicators used to calculate the scores, as well as information that, while not used in the scoring, may provide direction for further investigation. The report concludes with a specific recommendation for further due diligence needed to minimize losses associated with the subject transaction.
The HQ FraudID report is an automated solution, returning reports in minutes, and often seconds, at a cost similar to that of an AVM. While the information needed to place an order is minimal, it facilitates significant results. The required fields are borrower name, address (either the subject property or the borrower's residence), social security number, and loan number. Additional input (date of birth, home and work phone numbers, driver's license number, and subject or home address) allows for more thorough screening. The HQ Fraud Score rates risk on a scale similar to credit scores. Reports may be ordered
individually through the Web site or in bulk via email. Lenders and investors can minimize their fraud losses by auditing or performing due diligence on loans with the highest fraud scores.
Concurrently, Hansen Quality is also announcing Preview FP, which includes not only the HQ FraudID report but also Hansen Quality's industry-standard Preview collateral risk management report and ValueSure AVM. The HQ Collateral Score is based on multiple verifications of risk indicators, including appraiser performance; areas review history; Automated Valuation Models (AVMs); previous subject valuations; and regional economic risk indicators. By combining
Preview's HQ Collateral Score with the HQ Identity Fraud Score, the HQ
Fraud Score in Preview FP summarizes both of the subject areas critical
to evaluating the risk of mortgage fraud in a single score.
"With mortgage fraud becoming such a serious and growing issue, the industry must take action to ensure the protection of financial institutions and consumers," said Greg Hansen, President of Hansen Quality. "By incorporating fraud prevention screening into our Preview collateral risk assessment, we are providing lenders with the integrated tools necessary to minimize losses resulting from identity fraud and inflated valuations, while also helping to minimize the effects of identity theft on consumers."