By Lisa A. Tyler
National Escrow Administrator
"IN the back of my mind" serves as positive proof reading articles in this newsletter expands your knowledge and aids in the reduction of claims for the Company. An examiner in this story runs across entity names in the chain of title he is certain he has seen before. His detection leads to the discovery of a criminal ring thought only to have destroyed property titles on the West coast, but now appears in Florida.
Every year I am surprised by the new schemes and scams the fraudsters come up with. Year 2014 proved to be no different. There are three schemes which seemed to top the list in 2014. Nearly every week your escrow administrators received reports from our direct and agency operations about criminals attempting or succeeding in perpetrating these schemes. They are – cybercrimes, holding escrows and counterfeit checks. Find out more about them in "TOP stories."
"JUST as we were resigning" is a story about a buyer looking to scam the escrow holder out of millions by having them accept more money than needed to close from a third party investor. The contract buyer wanted the overage returned to his bank account at closing. There is no telling what story the contract buyer was telling his investors. Luckily, we resigned from the transaction before ever having to find out.
Not all residential loans will be originated and closed using the Loan Estimate and Closing Disclosure. Some residential loans are exempt from the new rules and the new forms. Read "GONE but not forgotten" to discover the types of loans that will be originated and closed using the same forms used by the industry today, even after August 1, 2015.
And be sure to answer the monthly CFPB question to ensure you understand the new rules!