First American Data & Analytics Division Launches AppIntelligence® Score for Mortgage Fraud
First American Data & Analytics, a part of First American Financial Corporation (NYSE: FAF), has launched the AppIntelligence® Score (AI Score), an advanced fraud detection solution for lenders. This innovative tool uses predictive modeling to identify fraud risks in mortgage applications, targeting only about 10% of applications that account for over 50% of total fraud risk. AI Score enhances operational efficiency by minimizing false positives and streamlining loan approvals. It also incorporates machine learning and proprietary data for continuous improvement.
- Launch of AI Score improves fraud detection and operational efficiency.
- Targets 10% of applications with over 50% fraud risk for focused reviews.
- Utilizes machine learning for continuous model improvement.
- None.
First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF) and a leading global provider of property and ownership data and advanced analytic solutions, announced today the launch of its AppIntelligence® Score (AI Score) fraud solution. AI Score is a powerful new fraud pattern-recognition score that enables high-volume lenders and investors to more precisely identify the risk of fraud and early payment default on both new mortgage applications or a portfolio.
AI Score, part of the division’s AppIntelligence Suite, delivers a highly accurate score that significantly reduces review volume and false positives and uses proprietary predictive modeling to paint a truer picture of where fraud and early payment default risk are likely to occur. For example, loans with the highest AI Score, usually about
AI Score utilizes First American Data & Analytics’ proprietary predictive fraud indices, employing both natural and artificial intelligence machine learning technologies. It simultaneously runs proprietary sub-models for risk, including synthetic identity, income, employment, early payment default (EPD), undisclosed debt and loan participant risk review.
In addition, AI Score has a retro-scoring capability, so lenders can run a portfolio to identify which loans would have been flagged by the model. AI Score produces a scale of scores from low to high risk that can be customized to the lender’s risk tolerance. AI Score incorporates First American’s proprietary and consortium fraud data that tracks and evaluates millions of past underwriter clearances to evaluate risk level. This data is then fed back into the model for continuous machine learning.
“The ability to analyze millions of alerts that underwriters have cleared, and then feed that information back into the model, is what makes the AI Score one of the most sophisticated models on the market,” said Robert Karraa, president of First American Data & Analytics. “By targeting the most at-risk loans, AI Score will help lenders streamline the number of review cycles and still uncover the highest risk areas of fraud.”
AI Score is the newest addition to the growing, innovative First American Data & Analytics AppIntelligence Suite. The suite is powered by First American data solutions, the industry’s largest and most complete property information and ownership data. The suite provides critical analytics for fraud, verification, valuation and compliance featuring key solutions, including FraudGuard®, RegsData™, Vendor Management Suite and the Digital Gateway API.
For more information about AppIntelligence Suite visit http://dna.firstam.com/appintelligence-suite or AI Score, go to https://dna.firstam.com/mortgage-risk-management.
About First American Data & Analytics
First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest property and ownership dataset that includes more than 7 billion document images. Its major platforms and products include: DataTree®, FraudGuard®, RegsData™, TaxSource™ and ACI®. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced decisioning solutions at www.FirstAmDNA.com.
About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of
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