Here are some best practices that our clients
are currently using to help them detect and prevent
• Within your fraud management tracking system,
include structured data fields for: the timing of
the suspicious activity; the discovery date; the
method of detection; and the type of fraud.
• Report fraud rates by vintage and seasoning
age, and report on each origination/application
year separately. Compare the years at consistent
seasoning ages, for example 2015 vintage as of
June 2016 versus 2016 vintage as of June 2017.
• Include as many years of history as possible in
your tracking and reporting, as fraud is cyclical
over long periods of time, and include pre-fund
findings as well as post-fund findings.
• Keep a timeline of changes in controls or
policies that are likely to impact fraud risk,
such as income verification policies or reduced
• Track leading indicators of fraud risk for trending,
including by origination channel, third party
originators, loan programs, or loan purpose
(purchase or refinance).
It is easy to rely on information that appears
to be timely regarding current fraud risk, but be
cautious and include a longer-term view and
approach to effectively manage the full breadth of
mortgage origination fraud, including fraud that may
take several years to identify.
Bridget Berg is Senior Director, Fraud
Solutions Strategy, for CoreLogic, where
she leads the delivery of fraud risk
management solutions to the mortgage
industry. She can be reached at