Ocrolus, a vertical AI workflow and analytics platform for lenders, has announced that its document fraud detection solution, Ocrolus Detect, will now be included at no additional cost for all its mortgage customers. Ocrolus Detect reviews bank statements, pay stubs, and tax forms for tampering. Underwriters see the results of the review in the Ocrolus platform or the Encompass embedded viewer where they already review the file.
Ocrolus has leveraged its integration with Resistant AI to enable Detect to spot documents that are created or edited by generative AI. Unfortunately, Generative AI makes it easy and inexpensive to produce false financial documents across different types of lending. Ocrolus has determined that 12% of loan applications processed via its platform contain suspicious activity. Detect determines both what a document says and how it was created, and gives each document an authenticity score with reason codes to indicate to the underwriter where the issue was located and why it was flagged.
This latter point is key. Detect identifies specific issues in flagged documents and gives lenders an explainable result. This can help lenders meet new AI governance requirements from Freddie Mac and Fannie Mae that went into effect earlier this year. To this end, Ocrolus has also integrated with Fannie Mae’s Income Calculator and Freddie Mac’s AIM Check, and maintains a formal AI governance program with controls mapped to both frameworks. The controls are audited every year by independent third parties and through application security testing.
Lenders using Detect have already reported positive results. JMAC Lending, a wholesale lender based in Costa Mesa, California, analyzes every file in its Encompass pipeline with Detect. In doing so, JMAC prevented nearly $2 million in fraudulent loan volume in the first months of use. The lender reported that in one instance, Detect uncovered a bank statement showing a $300,000 deposit in an account that held only $1,200.
“The conversation with lenders has moved from ‘Can AI do this?’ to ‘Can I trust it enough to put it into production?’” Ocrolus General Manager of Mortgage Nadia Aziz said. “Fraudulent bank statements and income documents can now be created in minutes and are becoming harder to distinguish from the real thing. Fraud screening should be built in, not an added expense for lenders. Detect shows underwriters exactly why a document was flagged, and the underwriter makes the call.”
Founded in 2014 and headquartered in New York, Ocrolus won Best of Show in its FinovateFall appearance in 2021 and most recently demoed its technology on the Finovate stage at FinovateFall 2023. At the conference, the company showed how its AI-driven document automation platform optimizes credit decisions in small business, mortgage, and consumer lending, enabling firms to automate financial analysis and help borrowers access the financing they need faster and on the best possible terms. Ocrolus’ platform analyzes 750,000 credit applications a month, and its technology powers digital lending experiences for more than 500 customers, including SoFi, PayPal, Square, and Zillow. Sam Bobley is co-founder and CEO.
Photo by Tierra Mallorca on Unsplash
