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:

   July 25, 2019 at 3:25 pm

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

   Reply
   • FCT says:

     July 25, 2019 at 3:43 pm

     Happy to help, Julie!

     Reply