Ocrolus Bundles AI Fraud Detection Free for All Mortgage Clients

Ocrolus, a vertical AI workflow and analytics platform serving lenders, now provides its document fraud detection solution at no additional cost to all mortgage customers. The tool, called Ocrolus Detect, examines bank statements, pay stubs, and tax forms for signs of tampering.

Underwriters view the fraud analysis directly within the Ocrolus platform or through the Encompass embedded viewer where they already conduct file reviews. The company's data shows that 12% of loan applications processed through its platform contain suspicious activity.

The platform integrates with Resistant AI to identify documents created or altered using generative AI. According to Ocrolus, generative AI has made producing fake financial documents cheap and simple across all lending categories.

Detect evaluates both the content of a document and the method used to create it. Each document receives an authenticity score with reason codes that pinpoint where problems were found and explain why the system flagged them. This explainability helps lenders meet new AI governance requirements from Freddie Mac and Fannie Mae that took effect earlier this year.

Ocrolus has integrated with Fannie Mae's Income Calculator and Freddie Mac's AIM Check. The company maintains a formal AI governance program with controls mapped to both frameworks.

Independent third parties audit these controls annually through application security testing, ensuring the system meets regulatory standards while providing transparent results to underwriters.

Wholesale lender JMAC Lending in Costa Mesa, California, runs every file in its Encompass pipeline through Detect. The company prevented nearly $2 million in fraudulent loan volume during its first months using the tool.

In one case, Detect uncovered a bank statement showing a $300,000 deposit in an account that actually held only $1,200. The system flagged the discrepancy for underwriter review before the loan could proceed.

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 based in New York, Ocrolus analyzes 750,000 credit applications monthly. More than 500 customers use its platform, including SoFi, PayPal, Square, and Zillow. Sam Bobley serves as co-founder and CEO.