While the volume of claims the title industry has paid has declined every year since 2010, fraud and forgery continue to be among the top sources for claims.
North American Title Insurance Co. (NATIC) created a CloseWatch program that rewards agents who identify fraud and forgery and play a significant role in preventing the consummation of transactions deemed to be fraudulent.
NATIC provided the following checklist of items to watch for in guarding against fraud and forgery:
According to NATIC, none of the items in the list are absolute indicators of fraud or forgery. In addition, a red flag does not necessarily mean that the transaction is fraudulent, but it does mean that a title professional should take extra steps to make sure it is legitimate. Title professionals that encounter any red flags should discuss the issue with their title officer, manager, supervisor or underwriter.
“The more red flags you spot in a transaction, the more caution is warranted,” NATIC warns.
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