#USA #Chicago #Fraud Detection #Mortgage Lending #Ocrolus

Ocrolus Enhances Security with Comprehensive Fraud Detection

Ocrolus, an innovative AI workflow and analytics platform tailored for lenders, has made a significant stride in enhancing the security of mortgage lending by integrating its fraud detection tool, Ocrolus Detect, into every mortgage account at no extra charge. This proactive initiative is designed to combat the rising concern of financial fraud in lending.

As the financial landscape evolves, so too does the sophistication of fraudulent activities. Generative AI has made it alarmingly easy to create fake financial documents such as bank statements and pay stubs. In fact, a concerning 12% of all loan applications processed through Ocrolus have been flagged for suspicious activity. With the introduction of Ocrolus Detect, underwriters can now identify tampered documents quickly and efficiently, ensuring they adhere to rigorous underwriting standards.

The Functionality of Ocrolus Detect

Ocrolus Detect performs thorough checks on crucial documents like bank statements, tax forms, and pay stubs. By integrating this tool seamlessly into its platform or the Encompass embedded viewer, underwriters can instantly view and analyze the results of their checks. The results come with authenticity scores and detailed reason codes that help underwriters understand why a document may have been flagged. For instance, it can point out discrepancies like unaccounted balances or edits made post-creation, giving lenders a transparent method to evaluate trustworthiness.

This enhancement is particularly notable in light of recent actions by regulatory bodies like Freddie Mac and Fannie Mae, which have introduced new AI governance requirements. Each detection flag generated by Ocrolus Detective not only provides a clear indication of issues but also carries a regulatory weight, making compliance much easier for lenders who provide sound reasoning behind their decisions.

Proven Impact in Real-world Scenarios

Since launching this tool, several lenders, including JMAC Lending based out of Costa Mesa, California, have already started leveraging Ocrolus Detect in real-time scenarios. In its early usage, JMAC prevented nearly $2 million in fraudulent loan volume, illustrating the immediate positive impact of adopting the tool. On one occasion, the system revealed a record of a suspicious $300,000 deposit in an account that typically maintained a balance of $1,200, showing the system's effectiveness in detecting irregularities.

The ongoing trend in financial fraud has shifted the conversation among lenders from merely questioning the capabilities of AI to questioning its reliability and trustworthiness. According to Nadia Aziz, the General Manager of Mortgage at Ocrolus, what lenders need now is not just an AI system that works, but one they can trust to operate without a hitch.

Continuous Support and Future Developments

The efficacy of Ocrolus Detect and the onboarding of this new technology into various lending workflows can largely be credited to the platform's deeply embedded experience in mortgage underwriting. Ocrolus employs in-house experts who bring considerable knowledge of former lending practices into the design and functionality of their products. This guarantees that lenders not only receive the best tools but also ongoing support through training and adoption processes.

In just three months, Ocrolus has successfully on-boarded 40 lenders onto its Inspect product, which is intended to automatically highlight data discrepancies and streamline underwriting conditions. This further showcases the trusted relationship lenders are cultivating with Ocrolus.

For those interested in seeing the full suite of Ocrolus mortgage tools in action, Rebecca Seward, Vice President of Product at Ocrolus, is scheduled to provide a demonstration at the MBA Annual Convention and Expo in Chicago on October 12.

About Ocrolus

Since its inception in 2016, Ocrolus has been on a mission to empower lenders with advanced AI-driven insights. By transforming financial documents into actionable intelligence, Ocrolus is paving the way for faster and more informed credit decisions, making it a trusted partner for over 500 financial customers.

Through its regulator-ready methodologies and commitment to enhancing security in credit underwriting, Ocrolus sets itself apart as the backbone of modern lending practices. Interested parties can learn more by visiting Ocrolus.com.