Fighting Fraud Abroad
London-The globalization of the economic and mortgage crisis is fueling a rise in anti-fraud measures from both sides of the Atlantic.
Stuart Title Ltd., the United Kingdom, European, Australian and New Zealand underwriter for U.S.-based real estate and insurance management firm Stewart Information Services Corp., is offering a new fraud indemnity policy to U.K. lenders.
The policy is designed to specifically safeguard against losses coming from fraud conducted by the current borrower, a previous owner of the property, or an associate of the borrower, the company said.
"The rise in mortgage fraud continues to be a growing concern for U.K. lenders, so based on customer feedback, Stewart Title has developed the first standalone fraud indemnity policy to meet the needs of those U.K. lenders looking only for fraud cover," said Stewart Title CEO, Steven Lessack.
"This policy is a cost-effective option for lenders that simply require the fraud cover as opposed to a policy which covers them for a range of other title defects."
The policy provides lenders, or other successors of a disputed mortgage title, with with a solution.
It covers debt against losses due to the status of the loan in cases wehn the lenders is hold liable such as when the mortgage is invalid or enforceable against the borrower's interest in the property because fraud has occurred. ultimately, for a one-off premium lenders or other asset holders are covered.
Through the policy Stewart Title assume responsibility to deal with claims made and financial losses suffered by the lender within the policy coverage guarantees.
Mr. Lessack noted that lenders "can be reassured that should a loss be incurred, as a result of a matter covered by the policy, the claim will be paid within days of the lender's loss being qualified, rather than the lender having to participate in lengthy and expensive litigation through the courts."
Similarly, the company offers a title insurance policy that also includes cover for mortgage fraud that can be used for both residential and commercial lending transactions. It requires a minimum of title investigation before cover is available, the company said.
According to Stuart Title, the title insurance policy enables lenders to complete a remortgage in a matter of days.