Digital Risk LLC has announced the availability of its Enhanced Quality Management Solution (EQMS) to assist loan originators in preventing repurchases and subsequent losses. The announcement was made at the Mortgage Bankers Association's Quality Assurance and Residential Underwriting Conference in San Diego.
The EQMS includes external verification techniques, analysis algorithms, fraud detection tools and random post-purchase (RPP) reviews. Digital Risk says the solution's RPP review process is not a re-examination of static documentation, but rather a "robust external validation" of information not available to originating underwriters.
EQMS combines reverification of data with automated analytics to identify undisclosed debts, flips, builder bailouts and other fraudulent schemes.
"We have identified and incorporated new and novel predictors of fraud and repurchase risk into our models, and we are extremely excited about the results," says Jeffrey Taylor, co-founder and chief business development officer with Digital Risk. "We are really fortunate to have the data set from forensic reviews available to calibrate the front end."
The algorithms allow for error fluctuations by minimizing deviations, resulting in the reduction of false positives. The redesigned proprietary risk models expand the thoroughness of collateral investigation and property eligibility, Digital Risk adds.
SOURCE: Digital Risk