The Multi-Closing Alert Program is designed to protect banks and other lending institutions against “multi-lien fraud,” also known as “shotgun” fraud. These are borrower schemes to apply for and close on multiple loans within a short time period. The program uses computer programs to identify cases of multiple closing activity against a single property at the same time, enabling the program participants to prevent losses from this type of mortgage fraud."This type of fraud adds up quickly because an individual can extract an amount several times the value of an individual property," said George Livermore, chief executive officer for First American CoreLogic. "We're committed to equipping lenders and the mortgage industry with the most effective tools for defending against fraud schemes from every angle. The Multi-Closing Alert Program is a unique cross-industry mechanism made possible only through the cooperation of our customers and the application of our extensive property and homeowner data and analytics." This sounds like a quick cure for Bad Business in the mortgage industry!
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