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Local firm fights rising tide of mortgage fraud: software allows lenders to protect both themselves and customers.

Publication: San Diego Business Journal
Publication Date: 27-MAR-06
Format: Online
Delivery: Immediate Online Access
Full Article Title: Local firm fights rising tide of mortgage fraud: software allows lenders to protect both themselves and customers.(Launch of credit card fraud detection software)

Article Excerpt
Three former employees of HNC Software, a San Diego company that made credit card fraud detection software, are now taking aim at a rise in fraud occurring in the mortgage lending industry.

Two years ago, the trio launched BasePoint Analytics, a firm that produces software that helps lenders identify mortgage fraud, an activity that usually involves multiple criminals, and can be far more costly than credit card fraud because the cash transactions are much larger.

In the last three years, mortgage fraud has increased 140 percent and has cost lenders between $1 billion and $3 billion annually, according to a BasePoint Analytics study that used data from banks and the Federal Bureau of Investigation.

"We found that losses stemming from mortgage fraud is costing lenders between 7 to 20...

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