It is long known that the best single-site coherent potential approximation (CPA) falls short of describing Anderson localization (AL). Here, we study a binary alloy disorder (or equivalently, a spinless Falicov-Kimball (FK)) model and construct a dominantly analytic cluster extension that treats intra-cluster (1/d, d=spatial dimension) correlations exactly. We find that, in general, the irreducible two-particle vertex exhibits clear non-analyticities before the band-splitting transition of the Hubbard type occurs, signaling onset of an unusual type of localization at strong coupling. Using time-dependent response to a sudden local quench as a diagnostic, we find that the longtime wave function overlap changes from a power-law to an anomalous form at strong coupling, lending additional support to this idea. Our results also imply such novel "strong" localization in the equivalent FK model, the simplest interacting fermion system. Anderson's seminal paper [1] spawned the fertile field of localization in disordered systems. While all states in spatial dimension d = 1, 2 are long known to be localized for any arbitrary disorder in the "weak" localization sense, strong enough disorder is generally expected to lead to exponential localization in all d. In a distinct vein, the exact and otherwise successful mean-field theory of AL, the coherent potential approximation (CPA) cannot, by construction, describe AL, since it cannot account for coherent backscattering processes that underpin AL. Nevertheless, CPA has been used in the Vollhardt-Wölfle (VW) theory to obtain a phase diagram with AL and metallic phases [2]. Other schemes marry the CPA with typical medium theory (TMT) to study AL [3]. However, given the necessity of including non-local correlations, several heavily numeric-based cluster approaches [4][5][6] have also been devised with mixed success. In addition, the simplest model of correlated fermions on a lattice, the Falicov-Kimball model (FKM), is isomorphic to the binary-alloy Anderson disorder model, and exhibits a continuous metal-insulator transition of the Hubbard band splitting type [7]. One might thus expect the above issues to be relevant for the FKM as well. To our knowledge, a dominantly analytic approach to cluster-based techniques in such contexts remains to be attempted, and is potentially of great interest.Recent work on many-body localization [8] suggest that at strong disorder the localization length is of the order of lattice constant (ξ ≃ 1). In this limit, an exact treatment of inter-site "disorder" (1/d) correlations beyond DMFT may thus be adequate to describe "strong" localization. Non-local response to a sudden local quench (a suddenly switched-on localized hole) in this regime exhibits a statistical orthogonality catastrophe (sOC), also studied earlier in the context of correlated impurity potentials in a fermi gas [9]. Thus, qualitative change in the long-time response of a system to a sudden local quench, wherein the explicit long-time wave function overlap undergoes a qualitative ...