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GlobalOptions Launches New Investigations Service to Fight Private Mortgage Insurance Fraud
NEW YORK--(BUSINESS WIRE)--May. 7, 2009-- GlobalOptions Group, Inc. (NASDAQ: GLOI), a leading provider of domestic and international risk management services, has announced the addition of Private Mortgage Insurance (PMI) Investigations to its Fraud and Special Investigations Unit division’s service offerings. The new service will support private mortgage insurers in exposing fraud arising from material misrepresentations made during the origination of a loan.
Private mortgage insurance protects lenders against losses resulting from the default of borrowers on their mortgage loan obligations. A PMI investigation gathers information that allows the insurance carrier to determine if a material misrepresentation occurred in the origination of a mortgage loan, which can be the basis for denying a PMI claim.
“As foreclosures continue to rise, and the losses to lenders and mortgage insurance carriers increase, insurers have asked for an investigative service that can help protect them from unwarranted losses,” said Franklin B. Pinder, III, President of GlobalOptions Fraud and Special Investigations Unit (“SIU”). “We assist insurance companies in uncovering a variety of material misrepresentations associated with residential loan applications and related documents, including borrower employment, income, assets, debt, residence occupancy and the use of a ‘straw’ or “front borrowers.”
The GlobalOptions PMI service includes verification of application information, deposit and employment; background investigation and skip tracing; and thorough field investigation.
The offering is currently being utilized by GlobalOptions Group clients and also leverages the company’s underlying industry-changing Rapid DataSM and GlobalTrak™ case management technologies, with multiple PMI client cases having already been identified as investigable by GlobalOptions mortgage insurance clients. The company has prepared a suite of services specifically tailored to the needs of private mortgage insurers.
“With more than 900,000 new foreclosure filings only since the beginning of 20091, GlobalOptions recognizes that the risk of PMI fraud will only increase as the year – and the fallout from the subprime mortgage crisis – progresses. We are poised to meet this need with a suite of services designed to maintain profits for the private mortgage insurers,” Mr. Pinder concluded.
About GlobalOptions Group, Inc.
GlobalOptions, with headquarters in New York City and offices in 16 cities, is an integrated provider of risk mitigation and management services to government entities, FORTUNE 1000 corporations and high net-worth and high-profile individuals throughout the world. We enable clients to identify, assess and prevent natural and man-made threats to the well-being of individuals and the operations of governments and corporations. In addition, we assist our clients in recovering from the damages or losses resulting from the occurrence of acts of terror, natural disasters, fraud and other risks. Our services currently include risk management, security, investigations, litigation support, anti-fraud solutions, business intelligence, and crisis management and preparedness services. Additional information can be found at www.globaloptions.com.
Statements in this press release regarding the company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. The company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1994, and as such, speak only as of the date made. To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties including the successful integration of the acquired businesses, projected financial information, and the continued successful implementation of the company’s business strategy.
Certain of these risks and uncertainties will be described in greater detail in GlobalOptions Group’s filings with the Securities and Exchange Commission. GlobalOptions Group is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
1 http://www.realtytrac.com/states/index.html - accessed April 22, 2009.
Source: GlobalOptions Group, Inc.
PR:
Lippert/Heilshorn & Assoc.
Jules Abraham, 212-838-3777
jabraham@lhai.com
IR:
Lippert/Heilshorn & Assoc.
Jody Burfening, 212-838-3777
jburfening@lhai.com
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