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.