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AppIntelligence Founder Launches Next Generation Loss and Fraud Mitigation company - DataVerify(TM)
New DRIVE(TM) product predicts fraud and loss with extreme accuracy
Chesterfield, MO, August 9, 2005 - It was announced today that former founder and CEO of AppIntelligence, Steve Halper, has launched a company named DataVerify, which offers a new first-in-class generation of automated data integrity tools. Powered with more robust exterior database sources, superior predictive analytics and a comprehensive array of new and advanced features, DataVerify’s products outperform the capabilities of existing legacy fraud prevention systems by significant margins. These new technological advancements allow lenders to predict fraud and mitigate loss with unprecedented accuracy while increasing workflow efficiency and reducing loan approval timeframes at the point of sale.
Mr. Halper has more than 30 years of experience dealing exclusively with mortgage fraud, due diligence, quality control and loss mitigation issues. Considered a pioneer in the area of automated fraud prevention systems, he developed DISSCO, the first such system of its kind in 1997. Mr. Halper has also developed systems to mitigate losses due to fraud and other default issues in reputable firms such as Fannie Mae, Chemical/Chase, Citicorp, Lehman/Aurora, AppIntelligence and others. In addition, Mr. Halper has provided consulting on such issues to Fair Isaac and Countrywide.
At DataVerify, Mr. Halper has created a new loss and fraud mitigation system called DRIVE(TM) (Data Risk Intelligent Verification Engine). DRIVE(TM) includes the most robust third party enrichment data sources overlaid with a leading-edge suite of models and algorithms including decision trees, neural networks, and linear and logistic regression analysis tools. This comprehensive data verification workbench has not only been proven to be the best performing fraud detection solution in existence, but even more importantly has proven to be a superior predictor of default and credit loss performance.
For example, extensive blind sample tests of DataVerify’s new DRIVE(TM) system have yielded unparalleled results in several new categories of performance, not found in existing data integrity systems. More specifically, the DRIVE(TM) system displayed the profoundly accurate ability to identify large credit losses (96% detection rate), repurchases (66%), delinquent accounts (65%) and foreclosures (81%) in addition to a record high 87% fraud detection rate.
The bottom line benefit to mortgage lenders is the realization that the DRIVE(TM) system can successfully predict large mortgage losses early on in the origination process mitigating two thirds or more of the lender’s key loss risk categories, said Mr. Halper. These dramatic findings validate our contention that the impact of poor or false data integrity can be directly correlated with lender’s credit and repurchase losses.
DataVerify’s new DRIVE solution is particularly timely given the accelerated growth losses associated with mortgage fraud. In 2004, the number of suspicious activity reports submitted to the FBI nearly tripled to 17,127, from 6,936 in 2003. Standard & Poor’s Structured Finance Group estimated the annual cost of mortgage fraud in 2003 at 3 basis points, or $1.2 billion, based upon data furnished by the Prieston Group. According to FBI statistics, during the first half of 2005, there were 642 pending mortgage fraud cases before the FBI, compared to a total of 534 cases for the entire year of 2004. These numbers indicate that mortgage fraud is growing at geometric proportions and could exceed $2 billion in costs to the mortgage business in 2005.
Additionally, many of the verifications that are included in DRIVE(TM) are currently performed by lenders using time-intensive manual processes or a scattered array of variant reporting systems. DRIVE’s fully automated “one stop verification shop” solution streamlines or eliminates many of these diverse verification steps resulting in the ancillary benefit of increased workflow efficiency and reduced loan approval timeframes.
DataVerify’s new DRIVE system maximizes customer return on investment by leveraging decades of fraud and loss mitigation experience to establish new technical standards of accuracy, agility and reliability delivered at a lower cost structure than competitive products. Lenders interested in a free demonstration of DataVerify’s DRIVE solution and ROI analysis should contact the DataVerify sales division at (866) 895-3282 or visit DataVerify at www.dataverify.com.
About DataVerify
DataVerify Corporation is the preeminent provider of loss and fraud mitigation and decision management solutions powered by advanced analytics and technology. As the mortgage industry moves away from paper-based processes into electronic processes, there is an ever-widening realization that data integrity has a dramatic impact on each step throughout the loan origination process. DataVerify offers clients a single end-to-end solution that provides best-in-practice data-mining, rules engines, artificial intelligence, relational databases and powerful analytics creating new insights into mortgage risk assessments, loss predictability and mitigation, operational strategy, product offering design and pricing and marketing initiatives.
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