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Wyatt Bell's Blog

New Radar Detection Needed for Title Industry - Clever Frauds and Scams
by Wyatt Bell | 2012/06/13 |

A new title agent is licensed and registered with the state and has signed a bona fide agency agreement with a national underwriter. But there lurks one undetectable flaw.

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The newly licensed and registered title agent writes a small percentage of business on the unsuspecting underwriter pursuant to a real and legitimate agency relationship.

However, a majority of business is written on what appears to be legitimate agency relationship with another underwriter, which in fact, does not exist and which is totally fraudulent.

Phony and crooked CPL's, title commitments and title policies are issued.

Agent keeps all the fees and remittances that would be due the underwriter under honest dealing. If a claim arises a policy switch can be done quickly.



193 words | 2823 views | 1 comments | log in or register to post a comment

Sounds pretty sophisticated...

Like most title insurance crimes, it seems that the risk of getting caught would be too great to make it worth the effort.  The paper trial would to too large to every hide and eventually it is going to lead straight back to the crooks.

It really makes you wonder... if someone thought they could do enough "phony business" to make this profitable, why not just do it right and issue real policies and remit the premiums.  The typical split is proabably around 80/20.  It just seems foolish to take a risk like that to make an extra 20%!

But, I guess criminals just don't have enough common sense to realize that.

by Robert Franco | 2012/06/20 | log in or register to post a reply
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