Comergence™ Partners with BasePoint™ to Improve Risk Detection and Compliance Monitoring

Leverages BasePoint’s renowned fraud analytic expertise

CARLSBAD, Calif. & ORANGE, Calif.--(BUSINESS WIRE)--Comergence Compliance Monitoring™, a comprehensive outsource solution provider for TPO management, and BasePoint Analytics™, a leading provider of scientific fraud and risk analytic scoring solutions, today announced Comergence is augmenting its TPO management and compliance monitoring services by partnering with BasePoint to provide comprehensive fraud and early pay default risk management for lenders and brokers. Comergence chose a broad set of BasePoint solutions to offer clients the most robust fraud and risk protection products available. Within its lender protection services, Comergence will offer BasePoint’s BrokerWatch® score, the only solution that provides broker risk scoring based on the risk and performance of loans assembled by brokers. BrokerWatch compares a broker’s loan risk to other brokers, and assesses the risk of the broker’s loans submitted at a given lender compared to those submitted to other lenders in BasePoint’s consortium of over 12 million loans. This helps lenders determine if they are being adversely selected.

“Lenders and brokers can realize immediate measurable loss prevention and improved business relationships with these solutions.”

Comergence will also offer BasePoint’s market-leading FraudMark® score and BasePoint EPD™ Alert. These offerings ensure lenders and brokers have the ability to score and stop fraud and early payment default before loans are submitted by the broker or funded by the lender. BasePoint has helped lenders, investors and due diligence firms prevent over $2 billion in suspicious loans over the last two years.

“With growing losses in the industry, many lenders exited their broker-based businesses to curb losses. However, BasePoint has conducted several lender studies that showed that 100% of the lenders’ fraud and EPD losses were due to the loans submitted by only 8-12% of their brokers,” said Tim Grace, president and CEO of BasePoint Analytics. “It is our hope that more companies realize the analytical resources available and implement comprehensive risk management solutions comprised of BrokerWatch to precisely identify the high risk brokers and take appropriate action before the losses are incurred, and the FraudMark solution and EPD alert to identify on a loan-by-loan basis which loans being submitted require more scrutiny before submittal, acceptance, or funding.”

“We elected to partner with BasePoint because they offer the best fraud and risk detection solutions in the industry. We have seen the advantage of the extremely low false positives of BasePoint’s products first hand. In addition, this is the only broker risk score based on loans the broker has submitted to lenders and facilitates our business model to identify risky brokers before they start submitting loan files to our lender clients – not after the damage is done. Adding this pattern recognition risk detection to our first-in-industry outsource solution makes our third party originator due diligence and compliance monitoring service truly unique,” said Greg Schroeder, Comergence President. “Lenders and brokers can realize immediate measurable loss prevention and improved business relationships with these solutions.”

Tim Grace added, “The combination of Comergence with BasePoint solutions will offer lenders a secure way to source loans from brokers, and Brokers a way to protect their good name by prescreening loans before submitting them to lenders. As the industry rebuilds and new companies emerge, we are excited to see and partner with companies like Comergence that are taking proactive steps to implement comprehensive due diligence and monitoring solutions to stop fraud and default.”

The BasePoint solutions use sophisticated analytic scoring technology to identify risky mortgage loans and brokers, facilitating quick and effective due diligence on high risk loans and businesses before funding. The models accurately predict the likelihood of a loan containing fraud or payment risk that will result in financial loss to the lender/investor. The scores risk rank all loans or entities to create a highly targeted subset for review. BasePoint’s specialized solutions provide real savings to clients.

About Comergence

Comergence Compliance Monitoring, headquartered in Orange, California, is the mortgage industry’s first end-to-end outsource solution for TPO management and compliance monitoring, providing a comprehensive alternative to a lender’s in-house management and monitoring resources. Using a variety of best-practice processes, proprietary monitoring technology and hands-on service protocols, Comergence provides lenders unparalleled simplicity, security and quality. For more information, visit www.comergence.com.

About BasePoint

BasePoint Analytics is a leading provider of predictive analytic fraud and risk management solutions for global banks, the mortgage industry and consumers. Using proprietary pattern-recognition technology, BasePoint quickly identifies potentially fraudulent or high risk activity, minimizing losses while accelerating the processing of non-risky records. The company’s fraud experts have deep, real-world domain expertise and have successfully solved fraud and risk challenges for many high profile institutions. BasePoint works with industry-leading customers in mortgage origination, investment banking, payment cards and consumer services. BasePoint clients achieve dramatic improvements in fraud and loss detection performance using a predictive analytic approach rather than traditional methods. BasePoint is headquartered in Carlsbad, California. For more information, visit www.basepointanalytics.com.

Note to Editors: Comergence Compliance Monitoring is a registered trademark of Comergence Compliance Monitoring LLC. BasePoint, FraudMark, BasePoint EPD, BrokerWatch and BasePoint Analytics are trademarks or registered trademarks of BasePoint Analytics LLC.