The Importance of Escrow Payment Recipient Name Matching to Avoid Wire Fraud Harm

Yesterday the Federal Reserve Chairman Jerome Powell testified in front of the US House  Financial Services Committee about monetary policy generally, however he was asked an interesting question during his appearance by  Representative Brad Sherman (D-CA). Rep. Sherman inquired why the Federal Reserve does not establish a payee name matching requirement to prevent wire transfer […]

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The All Too Real Threat of Consumer Identity Theft and What Mortgage Banks Must Do to Help Prevent It

A recent article in Bloomberg Business Week chronicled the SIX YEAR plight of a reporter who was a victim of identity theft.  The cost mentally, physically, financially and to his reputation was severe and life changing.  Consumers are paralyzed without good credit, and the theft of identity can  launch a nightmare scenario involving significant personal […]

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NCUA Gets Serious About Credit Union Third Party Vendor Management

The National Credit Union Administration, based in Washington, was an early advocate for vendor management policies.  As early as 2001, the NCUA issued a guideline suggesting that credit unions manage third party service provider risk carefully. The suggestion had no real weight however. After the CFPB issued its Bulletin 2012-3 bringing third party vendor management […]

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Legal and Ethical Considerations Surrounding the Handling of Consumers’ Private Data by Mortgage Lenders

Never have there been so many legal and ethical considerations surrounding mortgage lender handling of consumer data.  There are good reasons for this fact. Mortgage lenders have access to the most personal and private information owned and guarded by consumers.  This includes their names, age and dates of birth, marital status, home addresses, work addresses […]

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Successful Risk Management Requires Proper Top-Down Governance

Any organization seeking to adopt appropriate operational risk management policies and procedures must ensure that they have met the five step process to ensure success.  This process focuses on proper governance.  It is not enough to simply “check the box” and hope that wire fraud, mortgage fraud and closing fraud never reach the organization. The […]

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When a Closing Attorney’s E&O Policy is not Actually Insurance and Why a Lender Should Care

If you are merely collecting a “Certificate of Coverage” on behalf of a closing attorney and passing them through your loan process as meeting your internal risk management protocols you may be in for an unpleasant surprise if a claim arises. At Secure Insight we do more than collect insurance certificates, we review policies and […]

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New Attorney E & O Exclusion Exposes Lender Closing Table Risk in Massachusetts

We have noticed that in Massachusetts, insurance carriers providing attorney errors and omissions coverage have been quietly adding a new exclusion to their new and renewal policies.  This exclusion is known as the “Disbursement of Funds” exclusion, and it creates enhanced risk for lenders in that state in the event an attorney fails to properly […]

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NYSAR Reports Up Market for Sales in NY, with No CPL Lenders Face More Purchase Mortgage Closing Table Fraud Risk

Lending in New York?  Purchase money business always carries closing fraud risk, however New York business tends to be riskier for many lenders.  The state has high average loan amounts, features instrument recording procedures that delay evidence of mortgage and deed recordings for long periods of time following the closing, and there is no CPL […]

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Conviction of Attorney and Title Agency CEO for $26 Million Fraud Crime Reinforces Need for Closing Agent Risk Management

According to an article published today in Mortgage Professional America, the former CEO of LandCastle Title, who also served as the managing partner of a real estate law firm, will spend 15 years in federal prison for orchestrating a scheme to bilk his firm out of millions of dollars. Nathan E. Hardwick IV, 53, operated […]

Read More Conviction of Attorney and Title Agency CEO for $26 Million Fraud Crime Reinforces Need for Closing Agent Risk Management