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LexisNexis RiskWise Helps Mortgage Lenders

Reduce Application Fraud and Identity Theft


LexisNexis RiskWise solutions help lenders increase loan pull-through rates,
decrease repurchase and origination costs
DAYTON, OH, OCTOBER 14, 2004 – Mortgage industry analysts have estimated that more
than 10 percent of home loans have an element of misrepresentation, and law enforcement
agencies note that mortgage fraud continues to grow. To help the mortgage industry,
LexisNexis offers RiskWise screening solutions that lenders and brokers can use as part of
their efforts to verify the applicant’s identity. The solutions include an SSN verification and help
to combat identity fraud, reduce application misrepresentation, detect property flipping and better
segment loan applications to help increase pull-through rates, decrease delinquency and decrease
repurchase and origination costs.

“LexisNexis mortgage screening tools give lenders the power to verify the information that
applicants provide,” said Jim Peck, LexisNexis Sr. Vice President and Chief Operating Officer,
Risk Management. “Authenticating the identity of a loan applicant is the first and most crucial
step for mortgage lenders. Our products verify identity and offer a risk indicator to demonstrate
the risk of conducting business with that applicant. The mortgage lender can use our risk
indicators to develop policies to better analyze and segment loan applications.”

According to recent news stories, the FBI has received almost three times as many reports of
suspicious mortgage activity this year as compared to 2001. Through the first nine months of
2004, mortgage companies and banks have reported more than 12,100 instances of suspicious
activity compared with only 4,220 in 2001. The Associated Press reported that the FBI’s
stepped-up efforts to crack down on mortgage fraud “has resulted in more than 151 charges since
August in cases with potential losses to banks and other businesses of an estimated $3 billion.”

According to law enforcement officials, one of the key reasons for the increased fraud is the
lending and refinancing boom driven by the cheap credit available in the last few years. The
Commerce Department reported that sales of new homes rose by 9.4 percent in August, the
largest increase since December 2000.

LexisNexis RiskWise mortgage screening tools are developed utilizing LexisNexis years of
experience in offering fraud prevention services to banks and other financial institutions.
LexisNexis RiskWise works by searching multiple databases to verify and validate the
authenticity of an applicant’s identity and to provide a risk assessment indicator that has proven
to reduce false positives. Additional data can be returned to assist with exception processing and
re-verifications. RiskWise is designed to work at various stages in the mortgage cycle
particularly at originations and pre/post funding and is available via Web-based searches, batch-
processing or through systems integration in existing platforms.

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LexisNexis RiskWise InstantID, endorsed by the American Bankers Association (ABA),
helps financial institutions verify identity, predict and detect fraud, and is a part of a compliance
program for Section 326 of the PATRIOT Act.

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About LexisNexis
In the U.S., LexisNexis (www.lexisnexis.com) offers an extensive range of products and customized tools
that address job-specific and organization-wide information needs, driving productivity and confident
decision-making. For 30 years, LexisNexis has been an information solution provider. Through its risk
management flagship products, RiskWise®, PeopleWise®, Banko®, and Accurint®, LexisNexis products
help to authenticate identity, locate people and assets, enable commerce, conduct background screening,
and support national security initiatives. Customers include government agencies, top law firms, and major
companies in the fields of national security, financial services, collection and recovery, insurance,
mortgage, telecommunications, e-commerce and retail. For more information,
contact http://www.lexisnexis.com/riskmanagement/

The information gained from LexisNexis non-consumer report products is not to be considered a consumer report (as that term is
defined in the Fair Credit Reporting Act 15 U.S.C. Section 1681, et seq., “FCRA”) and may not be used to determine a consumer’s
eligibility for credit or insurance for personal, family, or household purposes; employment; a government license, or benefit, or other
transaction initiated by a consumer, or for any other purpose permitted by the FCRA.

LexisNexis and the Knowledge Burst logo are trademarks of Reed Elsevier Properties Inc., used under license. RiskWise and
InstantID are registered trademarks of RiskWise L.L.C. PeopleWise is a registered trademark of PeopleWise L.L.C. Other products
or services may be trademarks or registered trademarks of their respective companies.

Media Contacts
LexisNexis
Kristina Grammatico
Public Relations
248.545.7731

Creative Response Concepts


Sean McCabe
Steve Burke
703.683.1703

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