CertifID launched PayoffProtect, which gives title, escrow and settlement companies peace of mind by preventing home loan repayments from being sent to fraudsters. This launch follows its recent $12.5 million Series A funding from Arthur Ventures, known for its leading investments in B2B software companies.
The new PayoffProtect solution combines CertifID’s expert knowledge and intellectual property suite. The latter includes machine learning capabilities that are now being leveraged to automate and standardize the process of verifying mortgage demand letters. In more than 95% of cases, the company’s validation engine software authenticates loan repayment wiring instructions.
Developed as a result of CertifID’s intrapreneurial culture, PayoffProtect is designed in response to customer feedback on an unaddressed area of vulnerability for real estate transfers. PayoffProtect is tackling the rise in fraud surrounding wire transfers made by title companies to lenders as part of mortgage payments.
These scams involve fraudsters posing as the mortgage lender in a real estate foreclosure, hoping to have the wire transfer redirected to the fraudster’s bank account.
“We’ve helped recover nearly $50 million in loan repayment fraud, and now we have the solution to prevent it,” said Tyler Adams, CEO of CertifID. “For large sum loans such as mortgages, verifying payment wiring instructions remained a laborious and vulnerable process. Thanks to PayoffProtect, the days of mortgage fraud are finally over.”
PayoffProtect is coming out of a beta period where it is already used by clients such as Knight Barry Title, Continental Title Company and Bluegrass Land Title. Prior to PayoffProtect, these industry professionals had no recourse but to manually fill out mortgage claim statements, then make countless phone calls to confirm bank wiring information and ensure compliance with insurance before sending a loan repayment bank transfer.
“Phone verification is frustrating, time-consuming and often leads to a dead end,” said Rachel Petrach, closing and compliance manager at Knight Barry Title. “PayoffProtect makes us feel comfortable, helps us sleep better at night, and hopefully reduces the gray tint in my hair a bit.”
“I love PayoffProtect,” said Jessica Tweedy, accounting controller at Continental Title Company. “It’s the simplest product there is. I did my whole week in minutes.
PayoffProtect is the newest product featured in the CertifID SaaS platform, which is integrated with leading credential production software systems, and enables busy credential and escrow operators to eliminate time-consuming manual processes from their workflow .
“We will not send payment without PayoffProtect,” said Bryan Brown, accounting controller at Bluegrass Land Title.
To give customers added peace of mind, all transactions using CertifID products are insured up to $1 million. It’s the only loan repayment protection solution on the market that insures each individual transaction.