|
Special Reports
Mortgage Fraud
CA Group Publishes Flier on Avoiding Problems
By James Comtois
CARLSBAD, CA--Protecting consumers from property fraud is a big priority within
the mortgage industry and with the surge in technological advances within the industry maintaining such protection
requires more education and tenacity than before. As a means of helping consumers avoid property fraud, the Escrow
Institute of California has recently published a flier containing information on how to detect property fraud and
gives examples of the types of schemes that con artists have used to bilk consumers.
The EIC flier, available on the Institute's website at http://www.escrowinstitute.com, also focuses on
recent schemes involving fraudulent Internet transactions and phony escrow websites. It also provides a list of
the "Warning Signs of Fraud" and "Tips for Avoiding Fraud."
"Protecting consumers' personal information, financial data and real property
are top priorities and require more education and vigilance than at any time in the past," the flier explains.
"Fraud and identity theft are commonplace problems in today's world. Technology is a tool like any other,
which works both for legitimate businesses and for those who prey on unsuspecting consumers."
Many of the basic defensive principles of the past still apply, according to the
flier, "but there are no unbeatable or fool-proof systems to avoid becoming a fraud victim. Fortunately, consumers
have many tools available to keep one step ahead of the bad guys."
Some of the warning signs of potential fraud that the flier reveals include the
power of attorney being used without explanation, the lack of a property inspection, and situations in which a
seller procures an appraiser or requests to avoid either escrow or title insurance. Other red flags that a borrower
or originator should note are disparity in document dates, recent liens on the property, sudden or last minute
changes to escrow, or terms or fees that don't make sense.
Additional tips for originators can give borrowers seeking to avoid fraud include:
• Know exactly what you are signing.
• Don't be afraid to ask questions and expect a reasonable answer.
• Get an attorney or neutral counselor to explain documents.
• Avoid pressure to sign anything quickly without reviewing it.
• Never sign blank documents or those with missing details.
• Understand promised mortgage terms and check them against actual documents.
• Check references of real estate professionals.
"For 60 years, the Escrow Institute of California has been committed to protecting
consumers' real estate investments by providing them with practical information to guide them through the escrow
process. To that end, this [flier] is designed to help consumers avoid fraudulent property transactions and to
encourage them only to work with licensed escrow companies," said P.J. Garcia, EIC chairperson.
Established in 1947, the Escrow Institute of California is a professional trade
association that represents the licensed, independent escrow industry in California. EIC members are licensed by
the California Department of Corporations, undergo background checks and fingerprinting by the Department of Justice
and are bonded by the Escrow Agents' Fidelity Corp.
EIC is a proud member of the Escrow Fraud Task Force, established in 2004 by the
California Department of Corporations in coordination with the Federal Trade Commission, the FBI, the Southern
California High Tech Task Force and the Los Angeles County Sheriff's Department.
|
