Wolters Kluwer Financial Services, through its PCi line of compliance analytics solutions, announced today a new mortgage fraud prevention program that can help lenders reduce the number of fraudulent loans they inadvertently originate. By doing so, lenders can avoid huge monetary losses and produce cleaner, more saleable loans that strengthen the reputation of their brand and improve relationships with warehouse lenders and investors.

According to Dennis Outlaw, senior Mortgage Fraud consultant with Wolters Kluwer Financial Services and architect of the new fraud prevention program, the company has assembled the financial services industry's most complete offering of consulting, training and auditing services available to help lenders curb mortgage fraud.

"The mortgage fraud problem has grown so fast and changed so much in the past several years, that many lenders have not had the time to design and implement a formal prevention program," Outlaw said. "The continually skyrocketing number and type of mortgage fraud scams in the marketplace can make the creation of such a program a daunting task for lenders who choose to go it alone." He added that partnering with a provider like Wolters Kluwer Financial Services -- a company with decades of experience and expertise in helping financial institutions manage risk -- can make life much easier.

Stanley Street, president and chief executive officer of Street Resource Group, a leading warehouse lending systems and consulting firm, agrees, and says many of the mortgage fraud prevention services Wolters Kluwer Financial Services now offers stand to benefit warehouse lenders as well as the mortgage originators they work with.

"Both warehouse lenders and originators seek the expertise to assure that the loans they fund are fraud free," said Street. "By completing a fraud risk control review, following expert recommendations, and implementing fraud prevention programs which balance technology-based detection with staff education and training, lenders will significantly reduce the risk of fraudulent loans in their portfolios."

Wolters Kluwer Financial Services' new mortgage fraud prevention program centers on three critical components -- fraud risk control review, training and audit services. A lender needs all three to detect and prevent fraud before a loan is funded.

Through an initial on-site fraud risk control review, Wolters Kluwer Financial Services can help lenders design effective fraud prevention programs or improve upon existing ones. Next, the company uses on-site training to help lenders correctly implement their fraud prevention programs, understand how to identify and stop the latest fraud schemes, and mitigate existing cases of fraud and potentially recover losses. Finally, Wolters Kluwer Financial Services offers lenders pre- and post-funding audit services. Pre-funding audits help lenders ensure they are compliant with their fraud prevention programs' policies and procedures, allowing them to investigate any potential gaps leading to fraud before a loan is closed. Post-funding audits can be used to identify risk that result in losses associated with repurchases or to maintain a proactive quality assurance program.

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides best-in-class compliance, content, and technology solutions and services that help financial organizations manage risk and improve efficiency and effectiveness across their enterprise. The organization's prominent brands include Bankers Systems, VMP(R) Mortgage Solutions, PCi, GulfPak, Desert Document Services, AppOne, GainsKeeper(R), CCH(R) Capital Changes, NILS INSource(R), AuthenticWeb(TM) and CCH Wall Street(R).

Wolters Kluwer Financial Services' solutions include integrated and stand-alone compliance and work flow tools, documentation, analytics, authoritative information, and professional services. Customers include banks, credit unions, mortgage lenders, and securities and insurance organizations of all sizes throughout the United States. For more information on Wolters Kluwer Financial Services, visit .

Wolters Kluwer is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory sectors. Wolters Kluwer has annual revenues (2006) of 3.4 billion euro, employs approximately 18,450 people worldwide, and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

Release link: 

Related: