Stewart Title, the underwriter of UK transactions for Stewart Title Guaranty Company, has announced that it will provide a new cover to lenders that will safeguard their mortgage transactions.
Mortgage fraud manifests itself in several ways. Some fraudsters choose to alter the deeds to obtain the mortgage or lead the lender to believe that other parties to the transaction are agreeing to the loan.
Larger frauds tend to include various parties in collusion to benefit from the illegal mortgage proceeds. By the time the fraud is uncovered, the fraudster will have disappeared with the proceeds of the fraudulent mortgage while the lender faces significant financial loss.
For a one-off premium, the new policy provides cover for a lender and any successor to its title in the mortgage. Stewart Title assumes responsibility for dealing with claims made under the policy and for the financial losses to the lender which results from the matters covered by the particular policy. The company offers a range of policies to insure title and provide cover for lenders.
Steven Lessack, CEO of Stewart Title, said: Identity theft and related frauds are said to be one of the fastest growing crimes in the UK so Stewart Title provides the opportunity for peace of mind on mortgage transactions. A title insurance policy moves risk of mortgage fraud away from a lender so it can concentrate on its borrower and completing its mortgage.