Is it Fraud or Not?

Insight from Erika Lance, Senior Vice President, Nationwide Title Clearing:

Nationwide Title Clearing is a mortgage document preparation and recording company that has been in business since 1992 and are experts at filing assignments and lien releases as part of the regular course of business for the leading mortgage servicers in the nation. By far the majority of documents we prepare actually release the mortgage from records due to a normal borrower payoff.

For over 18 years we have kept mortgage servicers in compliance to state statutes that are designed to protect borrowers, and we have helped tens of millions of borrowers in the process. Additionally, over 99% of all assignments prepared by Nationwide Title Clearing were for performing loans (not behind on payments at that time) on behalf of mortgage servicers and/or investors for loans they had sold.

Due to our expertise in the area of preparing and recording assignments and lien releases, here are some tips of the trade from our experience in how to tell if a document is valid or not.

By far the vast majority of assignments filed in land records are totally legitimate legal documents that help keep the mortgage industry paperwork trails in proper order to protect both the homeowners and the mortgage companies. A tiny percentage of documents may actually be prepared incorrectly or even fraudulently. You have to do a little homework to be able to spot the legitimate ones from the fakes. Here’s a checklist to help you tell the difference.

TOP 6 CHECKLIST:

Probably Fraud:

1. Signing someone else’s name illegally (ghost signing)
2. No proof of signing authority either by Corporate Resolution or Power of Attorney
3. The preparer was not contracted to provide any related services on behalf of the lender, servicer or investor of the loan
4. Document notarized in a different state than the other parties that signed the document
5. The company or person that prepared and submitted the document is not easily locatable or accessible to provide proof
6. Corporate officer and notary is the same individual on a single document

Probably Not Fraud:

1. Notary is in good standing and has valid commission covering the date signed
2. Signers are able to provide proof of signing authority and are able to verify their signature confirming that they did in fact sign the document
3. The preparer is legally contracted to provide assignment services to the lender, servicer or investor of the loan
4. Document conforms to all state document format guidelines and was officially recorded
5. Filer is a fully audited, secure and reputable company
6. Preparer guarantees that documents are legal and ethically prepared