PRESS RELEASE


New Fraud Detection Alerts Available

‘Non-Arms Length’ Relationship Screening

Agoura Hills, Calif. - (Nov. 12, 2008) Interthinx announces the addition of 21 new conflict-of-interest alerts within its proven FraudGUARD(R) scoring system that identify possible collusion between loan participants. The technology advancement will help lenders identify "non-arms length" mortgage transactions -- a serious indicator of potential mortgage fraud. Interthinx is the leading provider of proven risk mitigation, fraud detection, and regulatory compliance for the residential mortgage industry and is the only company able to provide this level of detail about all participants within a mortgage application.

"A non-arms length transaction is one between family members, or when a personal or business relationship exists between the borrower(s) and seller and other third parties associated with the transaction," said Connie Wilson, executive vice president of Interthinx. "These types of relationships provide reason to suspect likely conflict of interest or collusion, and therefore should be thoroughly investigated along with all the other data points of the loan application before loan funding. FraudGUARD precisely identifies the conflicting parties through detailed descriptions and unique alerts."

It's logical to assume that loans involving related parties will increase as underwriting guidelines are strengthened and traditional credit sources dry up.

"Interthinx data indicates that mortgage fraud rates are rising because many borrowers and industry insiders are facing dire economic circumstances," said Ann Fulmer, vice president of Interthinx. "Fraudsters are always looking for new ways to 'game' the system, and the glut of foreclosed properties combined with the aggressive push to modify loans is providing them with new entry points. It's imperative that lenders and servicers use the most advanced and comprehensive technology to expose collusion and misrepresentation in order to stop criminals in their tracks. A fragmented approach simply will not work."

SOURCE: Interthinx Inc.