Amid growing investor concern regarding mortgage fraud, New Century Financial Corp. announced that it partnered with a company to implement fraud prevention software into its loan origination software.
New Century bought consulting services, as well as a product called FraudMark, from Carlsbad, Calif.-based financial services fraud analytics and consulting company BasePoint Analytics. The FraudMark system works during the loan origination process to assign a score of potential fraud to each loan, according to New Century. Presumably, the higher the score, the higher the chance that the loan documents in question contain false information. The company will also work with New Century to beef up current fraud detection processes.