Digital Risk In The News

RiskIQ from Digital Risk Improves Loan Due Diligence and Reduces QC Cost 30%

Next Generation 360° Risk Mitigation Platform Verifies
Identity, Income and Collateral Application Data

Chicago (May 15, 2006) - Digital Risk, a risk mitigation company providing tools limiting financial services firms’ exposure to fraud, has introduced "Risk IQ®," the first, new-generation verification product to provide a 360-degree risk assessment of mortgage transactions.

A key vendor at this year at MBA’s National Fraud Issues Conference in Chicago (Booth #16), Digital Risk, based in Dallas, Texas, is forging new ground in cost per transaction savings with its Risk IQ® fraud prevention solution. The company’s clients save 30% more per transaction using Risk IQ® than is possible using any of the other data verification products currently on the market.

"This newer technology means better due diligence and a more cost-effective means for achieving it," says Jeffrey Taylor, CEO, Digital Risk and a pioneer in fraud prevention. "Some lender losses today are the result of using fraud prevention tools invented five years ago and not capable of fighting today’s sophisticated fraud," he added.

"RiskIQ® serves as the foundation for our next round of product developments using concise data sourcing and comprehensive reporting operations capable of decreasing operational time by an average of 20%. What’s more, Risk IQ® is highly customizable," Taylor says, adding that "the black-box, one-size-fits-all model of the past simply cannot produce the results required to keep mortgage companies competitive in today’s marketplace."

RiskIQ® Features:

-360-degree visibility via a loan application due diligence report verifying each applicant’s identity and income as well as providing accurate collateral value assessments

-Reliable "yes/no" alerts that limit unnecessary reactions to "phantom issues"

-Investigation of questionable Social Security identity and IRS income data for only $0.95 per record, depending on volume

-Maximized utilization of all leading Automated Valuation Models

-Optional flood certification, credit report re-verification and "fraudster" monitoring

"This solution sits at a crossroads for our industry," says Peter Kassabov, President of Digital Risk. "It’s a different market today, full of repurchase requests that are putting some companies out of business and others into court. Failure to fight fraud early and often means trouble all around."

"Credit bureau information alone cannot provide the insight required to contend with today’s levels of fraud sophistication, and stand-alone verification services that are not integrated into the loan origination workflow process have proven equally ineffective," explains Mark. T. Clifford, CIO, GE Consumer Finance.

To develop its Risk IQ® product, Digital Risk teamed with some of the nation’s top 20 lenders - developing and integrating technology advances and fraud mitigation techniques necessary to meet the fraud-risk challenges posed by today’s rapidly changing marketplace. This collaborative effort resulted in a risk management solution capable of uncovering increasingly more sophisticated types of fraud thus freeing more time to pursue good business.

Higher investor ROI

By implementing Risk IQ®, Digital Risk’s clients are now securing more high-quality loans in the face of falling originations, while realizing quantifiably higher investor ROI.

The Federal Trade Commission estimates that 10 million individuals fall victim to identity theft every year, costing businesses and consumers more than $55 billion annually. Left unchecked, this fraud stampede across the mortgage landscape threatens to trample the business operations of major lenders and the personal credit files of millions of Americans.

RiskIQ® provides instant reports on identity data as well as income, employment, residence, and collateral information supplied by loan applicants. Any missing or disputed data automatically moves the process to an escalation phase, leading to resolution with official government databases. Using this solution, loan processors can focus the majority of their attention on good quality loans, leaving those of lesser quality to be dealt with later.

About Digital Risk

Digital Risk, LLC provides reliable, one-stop risk mitigation solutions for the loan origination industry. The Dallas, Texas-based company partners with all available governmental and privately held data sources, giving clients information necessary for proper application due diligence.