.postid-5927 .entry-title {display:none;} .postid-5927 .featured-image {display:none;} .postid-5927 .entry-content img.img-responsive { width: 100%; }

Title fraud risk present in nearly half of 3Q transactions

Wire and title fraud risk increased to a new high in the third quarter with just under half of all real estate transactions having at least one indicator of a potential problem, a report from FundingShield said.

The overall error rate for the quarter was 47.9%, compared with 41.6% in the second quarter and 47.6% for the third quarter of 2021. Wire fraud risk bottomed out at 35.8% in the first quarter. The third quarter fraud analysis reflected $80 billion of real estate closings, approximately 160,000 transactions from various sources, done through the FundingShield ecosystem.

“With the contraction in market transaction volumes, the impact is that much more severe for lenders where a single wire or title fraud event could be catastrophic,” said Ike Suri, FundingShield’s CEO in an accompanying commentary.

https://www.nationalmortgagenews.com/news/title-fraud-risk-present-in-nearly-half-of-3q-transactions