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Stearns Adopts Point Predictive’s MortgagePass™ for Targeted Loan Underwriting and Risk Reduction

·5-min read

Point Predictive Inc., the San Diego-based company that provides machine learning solutions to the lending industry, today announced that Stearns has selected its MortgagePass™ scoring solution to streamline lending decisions and fund more loans with less friction. MortgagePass is the industry’s newest application scoring solution using Point Predictive’s patented artificial and natural intelligence [Ai+Ni] approach to predicting fraud and reducing risk. Ai+Ni is proven to reduce false positives, improve productivity of manual resources, and result in a more profitable portfolio for mortgage lenders. Point Predictive has been granted three US patents on its technology approach over the last year with two additional patents pending.

MortgagePass provides mortgage lenders with a powerful machine learning risk score that allows them to give every application the right level of attention based on its risk prior to underwriting. The solution enables lenders to focus high-risk review resources on the riskiest applications. Only a small fraction of applications, often 10% or less, are risky enough to warrant additional scrutiny. In addition, it can validate if a less complex loan also carries low risk of fraud, which allows lenders to leverage lower-cost resources to decision loans.

"We believe the future of our platform depends on using data and technology to help us focus our risk management efforts where they matter most for our family of companies -- right up front," said Allyson Knudsen, Chief Risk Officer at Stearns. "For us, effective risk control is a delicate balance between identifying the riskiest applications and brokers that require more human intervention and streamlining the low-risk applications by leveraging Ai. Point Predictive’s machine-learning approach helps us strike the right balance."

"At Stearns, reducing false positives inherent in alert-based systems and identifying pockets of risk in our portfolio are the keys to effectiveness," said Vicki Bott, EVP of Operational Risk. "Every loan has its own level of risk, so it’s important to retrieve additional verification documents on only high-risk loans. With MortgagePass, we are better able to identify risky loans and focus our efforts on the right loans at the right time."

"We’re excited about our partnership with an innovative lender like Stearns," said Tim Grace, CEO of Point Predictive. "Over the years, the mortgage lending process has become increasingly complicated. In many cases, the process has become even more manual, with alert-based systems triggering too many unnecessary verifications. Point Predictive’s patented machine learning approach to scoring puts alerts in the context of loss risk. As a result, the mortgage lending process can overwhelm some underwriters, quality control departments, and funding groups with false positives, making them "blind to risk." By intelligently and automatically targeting risk, MortgagePass tells lenders which applicants to trust, making the loan decision easier while simultaneously directing appropriate resources to finding fraud or misrepresentation. Not surprisingly, most applications represent very little loss risk to lenders, so lenders like Stearns are able to provide the best possible lending experience to the most borrowers."

In addition to MortgagePass application scores, Stearns is receiving Point Predictive’s entity scores, which identify the risk associated with brokers, appraisers, and loan officers. Entity scores help Stearns by reducing fraud and risk and strengthening these third-party relationships.

For more information on Point Predictive and MortgagePass, please contact info@pointpredictive.com.

About Point Predictive Inc.

Point Predictive is an Ai technology company with deep expertise in building machine learning scoring models that have been widely deployed by banks and lenders. Point Predictive solutions enable lenders to fund more loans using a patented combination of Artificial and Natural Intelligence [Ai+Ni] that powers machine learning risk assessments. Point Predictive helps automotive, mortgage, retail, personal lending and student loan finance companies identify consumer loan applications that have truthful and reliable information without the intense interrogation and verification of data prompted by solutions currently in use. Highly regarded as one of the most trusted fraud and misrepresentation solution providers to financial services companies, Point Predictive leverages that experience to help lenders safely fund more loans to more consumers while reducing their first-party and third-party misrepresentation and fraud losses. Point Predictive is a big data company using unique insights powerfully orchestrated from millions of examples of true and falsified loan applications, billions of derived proprietary data elements, and scientifically selected third-party data sources to build powerful machine learning models augmented by the natural intelligence of human experience. Located in San Diego, California, more information about Point Predictive can be found at www.pointpredictive.com.

About Stearns Lending, LLC

For 31 years, Stearns Lending, LLC, has been a leading provider of mortgage lending services in Wholesale, Retail, Joint Venture, and Private Label sectors throughout the United States, where licenses are held. Stearns is focused on a unique strategy of investing in, building, and supporting great mortgage companies. The company is a Top 20 Independent Mortgage Lender.

Stearns Lending is an equal housing lender and is licensed to conduct business in 49 states and the District of Columbia. Additionally, Stearns Lending is an approved HUD (United States Department of Housing and Urban Development) lender; a Single-Family Issuer for Ginnie Mae (Government National Mortgage Association); an approved Seller/Servicer for Fannie Mae (Federal National Mortgage Association); and an approved Seller/Servicer for Freddie Mac (Federal Home Loan Mortgage Corporation). Stearns Lending is also approved as a VA (United States Department of Veterans Affairs) lender, a USDA (United States Department of Agriculture) lender, and is an approved lending institution with FHA (Federal Housing Administration). Stearns Lending, LLC, is located at 401 E. Corporate Drive, Suite 150, Lewisville, TX 75057. Company NMLS# 1854.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201027005755/en/

Contacts

Dennis Behrman
Vice-President of Marketing, Point Predictive
858.227.6644
info@pointpredictive.com

Andrew Pohlmann
Chief Marketing Officer, Stearns Lending, LLC
469.331.9056
andrew.pohlmann@stearns.com