MBA's Lender Technologies Corporation Issues RFI to Create National Database for the Prevention of Fraud Against Lenders
|June 11, 2007|
|LTC's Fraud Prevention Database RFI [pdf]|
Lender Technologies Corporation (LTC), a wholly owned subsidiary of the Mortgage Bankers Association (MBA), publicly issued a Request for Information (RFI) regarding the creation of a national database to help prevent fraud against lenders.
Within both the industry and law enforcement, there is increasing concern that mortgage fraud perpetrated against residential mortgage bankers has grown considerably over the past several years with significant consequences to lenders as well as to taxpayers, consumers and communities. At the request of an industry group made up of several of the largest residential mortgage lenders as well as Fannie Mae and Freddie Mac, and as part of ongoing efforts to combat mortgage fraud, a task force of MBA's Residential Board of Governors is exploring the creation of a national database, which will use technology to provide an early warning system for potential fraud. LTC, is requesting information to determine the availability of contractors that have the experience, expertise and staffing to develop, deploy and operate such a database.
"MBA continues to hear from its members that mortgage fraud is a growing problem that is becoming more expensive," said John M. Robbins, CMB, Chairman of MBA. "MBA believes that further innovation is required in order to adequately protect the industry, as well as consumers, taxpayers, and communities, from the costs of mortgage fraud and that is why we are lending our support to efforts to develop a national fraud prevention database."
The primary focus of this project is to develop a database and process to facilitate the sharing of key data that will improve a mortgage lenders' ability to identify and stop fraud at the point of origination. The project described in the RFI presents a very powerful opportunity for the mortgage industry to prevent fraudsters from harming both lenders and honest homeowners. To view the RFI, click www.lendertechnologies.com.
Source: Lender Technologies Corporation