I think you need fraud detection tools during the application process, pre-closing. There are a number of tools out there, but it's important to look at the file early on and review it again before it closes.

"... it's important to look at the file early on and review it again before it closes."

There are also a lot of tools to detect fraud at post-closing. At that point the horse is already out of the barn, but there are a lot of things you learn from the closing, including where the money went, that can help you decide who you're going to do business with. Typically, 100 percent of your loan production should be looked at on the pre-funding side and 10 percent of your production on the post-closing side should be reviewed, both for compliance and quality control.