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. TheContinue reading “Successful Risk Management Requires Proper Top-Down Governance”
Tag Archives: closingfraud
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 andContinue reading “When a Closing Attorney’s E&O Policy is not Actually Insurance and Why a Lender Should Care”
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 properlyContinue reading “New Attorney E & O Exclusion Exposes Lender Closing Table Risk in Massachusetts”
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 CPLContinue reading “NYSAR Reports Up Market for Sales in NY, with No CPL Lenders Face More Purchase Mortgage Closing Table Fraud Risk”
House Flipping Is Back to Pre-Crisis Levels according to NY Times
An article just published by the New York Times trumpets the news that house flipping is popular again. Those of us who have been in the mortgage industry for the past 10-15 years know that low interest rates and loose credit standards combined with property flipping fever drove much of the housing bubble in 2003-2008. Continue reading “House Flipping Is Back to Pre-Crisis Levels according to NY Times”
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, operatedContinue reading “Conviction of Attorney and Title Agency CEO for $26 Million Fraud Crime Reinforces Need for Closing Agent Risk Management”
Secure Insight Mortgage Industry Blog 