Spurred by a reverse mortgage lending client, Mortgage Cadence Inc. has integrated fraud risk analysis and detection capabilities into its automated mortgage data system. The new technology can help lenders verify borrowers and evaluate collateral risk, the company stated today.

The Denver, Colo.-based company has partnered with DataVerify to utilize its DRIVE system with Mortgage Cadence Orchestrator, which automates origination, processing, underwriting, and closing through secondary marketing. When lenders enter reverse mortgage data into the Orchestrator system, they can now request certain analysis of the information to help them combat fraud and reduce potential loan losses.

The capabilities were requested by Senior Lending Network, a top five reverse mortgage originator, which wanted to confirm the borrower, where they are living, their age and the value and risk of the property, said Mortgage Cadence spokesman Trevor Gauthier.

"The reports and scores that are returned allow Orchestrator users to quickly identify legitimate borrowers while reducing false positives, ensuring compliance with red flag rules and minimizing costly queries to the Social Security Administration," said Tim Counterman, Mortgage Cadence director of product management and compliance, in a company statement.

Data Verify, which sells fraud prevention systems for the mortgage industry, also provides a proprietary collateral risk assessment that includes public and non-public data analysis of foreclosure activity, flip activity, subject transfer history, geographic conditions and market sale.

"We will continue to update this platform to stay ahead of fraud schemes and underwriting criteria in an effort to mitigate the financial and reputational risks of our customers," stated DataVerify's Chief Information Officer Mike Moseler.