Stewart Title Ltd. Offers Lenders Cover Against Loss Resulting From Mortgage Fraud
|April 28, 2008|
LONDON -- Stewart Title Ltd., the underwriter of United Kingdom transactions for Stewart Title Guaranty Company, can provide lenders the cover they need to safeguard their mortgage transactions.
With the UK experiencing a rise in the number of mortgage related frauds, Stewart Title offers title insurance to help provide cover against such fraud. For a one-off premium, the policy provides cover for a lender and any successor to its title in the mortgage.
"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," said Steven Lessack, chief executive officer, Stewart Title Ltd. "A title insurance policy moves risk of mortgage fraud away from a lender so it can concentrate on its borrower and completing its mortgage.”
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.
“If the lender incurs a loss as a result of fraud or forgery covered by the policy, the claim will be paid within days of the lender’s loss being quantified, rather than the lender having to participate in lengthy and expensive litigation through the courts that may take years to resolve,” concludes Lessack.
Stewart Title Limited assumes responsibility for dealing with claims made under the policy and for the financial losses to the lender which result from the matters covered by the particular policy. The company offers a comprehensive range of policies to insure title and provide cover for lenders.
Title insurance can be used for both residential and commercial financial transactions and can require a minimum of title investigation before cover is available. The policy also enables a lender to complete a re-mortgage in a matter of days rather than weeks.
Source: Stewart Title Ltd.