Month: February 2018
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Mortgage Fraud Phishing Schemes Are Rocking the Mortgage Industry!
Back in October I wrote that Wells Fargo Bank and the Federal Bureau of Investigation (FBI) had issued separate alerts throughout the industry regarding settlement agent wire fraud. The reports provided details of a widespread scam whereby criminals are hacking attorney and title agent email addresses and changing wire instructions prior to closing. When the […]
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The Need for Uniform Certification of Settlement Agents!
Now that the settlement industry has come to terms with the Consumer Financial Protection Bureau’s third party service provider directives (I admit, there are a few holdouts), the industry needs to take the management of settlement agent risk to the next logical step. There is a need for the uniform certification of settlement professionals. When […]
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What is the CPL if It Is NOT Insurance?
A frequent question I often hear from lenders who have a claim related to a title or closing agent is “What is the insured closing letter all about?” When I turn the tables and ask them what they think it is, the answers I usually receive are (a) a part of the title insurance, (b) […]
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CPLs Are NOT Protection Against Settlement Agent Fraud!
You are about to wire closing funds to the table, into the hands of a lawyer, title agent or escrow company employee you have never met before, but no worries because you have a Closing Protection Letter right? Wrong. Take a good look at the language in this warranty letter. The majority of CPLs insure […]
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The Titanic Syndrome
Being a sales oriented business, mortgage lending resists anything that creates roadblocks, no matter how temporary, to the loan closing. The attitude is understandable, however short sighted it might be when facing a crisis or potential crisis. Some might say in fact that the industry ignored warning signs of potential financial liability and consumer harm […]
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Will Blockchain Technology Prevent Mortgage Closing Fraud?
Never heard of “blockchain” technology? Well then you better start Googling it, because like the fax machine, personal computer and the Internet, blockchain data authentication, storage and sharing technology promises to change the way financial transactions occur in a transformational way. Along the way the way banks make loans, and the way we access public […]
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Mortgage Fraud on the Rise Again!
First American Data Solutions recently released a report indicating that mortgage fraud has increased almost 6% in the first quarter. The rise in fraud is tied to the recent shift from refinance business to primarily purchase money mortgages. As everyone knows the purchase market is much riskier than rate and term refinance transactions. Whenever the […]
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What Wells Fargo Data Privacy Violation Fine Means for Mortgage Lenders
Last year Wells Fargo reached a $185 million settlement for what the Consumer Financial Protection Bureau and other federal officials called a widespread practice among employees of creating fake customer accounts, PIN numbers and emails in order to meet sales targets and earn bonuses. Details reveal that Wells Fargo employees may have opened as many […]
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