Watch out for these signs of fraud when processing mortgages

By FCT

Losses from fraud, especially in large transactions like purchases and refinances, can be significant. Whether you’re a lender, mortgage broker or mortgage specialist, it pays to be vigilant and investigate further when you see signs of potential fraud.

Red flags to investigate

  • Transfers of Title that are recent or immediately prior to the mortgage
  • Equity gifts
  • Power of attorney
  • Investment properties
  • Properties that are free and clear
  • Length of established credit is not consistent with the applicant’s age
  • Age and income of the borrower
  • Significant variations in the handwriting of the borrower
  • Employer’s address shown only as a post-office box or is difficult to verify
  • Funds are being used to pay off a loan or other debt not associated with the transaction

Making sure you have a lender’s title insurance policy from FCT will give you peace of mind that your deal has been reviewed by our experienced underwriting experts who are skilled at detecting fraud. A lender’s title insurance policy from FCT also covers you against losses associated with title defects and the priority, validity and unenforceability of a residential mortgage.

Have any questions about our lender policies? Ask us in the comments!

2 Responses to “Watch out for these signs of fraud when processing mortgages”

  1. Julie Sarich says:

    Thank you for providing this information – I will be sharing it with my Team…
    Julie Sarich – Branch Manager
    Servus Credit Union – Uplands Branch –

Leave a Reply

Your email address will not be published. Required fields are marked *