Digital Risk Unveils Enhanced Quality Management Solution To Ensure Loan Quality And Prevent Repurchases

Mortgage Originators, Mortgage Insurers, Warehouse Lenders and Conduits utilize Enhanced Quality Management Solution to detect fraud and prevent repurchases and losses

San Diego, CA (September 23, 2009) - Digital Risk, LLC, today announced the availability of its Enhanced Quality Management Solution (EQMS) at the Mortgage Bankers Association Quality Assurance and Residential Underwriting Conference in San Diego. As the market leader in repurchase reviews within the $4.2 trillion residential mortgage industry, Digital Risk has designed the solution to assist loan originators prevent repurchases and subsequent losses.

EQMS integrates the latest advancements in external verification techniques, analysis algorithms, fraud detection tools and random post purchase (RPP) reviews. The innovative approach has transformed the RPP review process from a re-examination of static documentation into a robust external validation of pertinent information not available to originating underwriters.

Responding to the rampant use of technology to enable fraud, EQMS combines actual re-verification of data with automated analytics to identify undisclosed debts, flips, builder bail-outs and other schemes. The sophisticated 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. EQMS blends automated analytics and manual confirmations to comprehensively verify income, employment and assets regardless of the documentation type. The synergy of these enhanced features greatly accentuates the ability of EQMS to isolate high risk loans protecting clients from repurchases and losses.

Jeff Taylor, Chief Business Development Officer, commented "By utilizing our 360 Degree approach, we are revolutionizing quality management to focus on the material items that truly prevent repurchases and fraud."

Jim Yeh, Chief Analytics Officer, added "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. We are really fortunate to have the data set from repurchase reviews available to calibrate the front end."

About Digital Risk

With offices in New York, Dallas, and Orlando, Digital Risk, LLC is a leading next-generation integrated portfolio management solutions provider to the $4.2 trillion residential mortgage industry. Digital Risk is the only company in the market that combines proprietary predictive modeling analytics with expert forensic underwriting services, thus providing its clients an integrated 360° portfolio management solution to maximize returns and minimize losses. The Company’s predictive analytics, when integrated with its asset management services, delivers an effective set of solutions that minimize credit risk, pinpoint and prevent fraud, identify and execute loss mitigation and asset recovery opportunities, execute loan repurchase and loss indemnification, ensure regulatory compliance, assure quality, and maximize portfolio returns, among others.

For additional information contact MORSE COMMUNICATIONS at 203-313-1464.

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