The Role of the Title Industry in Fraud Prevention Presented by Ed Rybczynski as part of a 2007 lecture series

The Role of the Title Industry in Fraud Prevention

Fiduciary: Someone who is legally obligated to place the interests of someone else ahead of his or her own. Federal prosecutors used the word often .

Accountability: Accountability means that you can’t say that you didn’t know . Accountability means that you can’t say that you didn’t understand . Accountability means that you can’t say that you can’t remember .

Accountability means that you can’t say that you didn’t know .

Accountability means that you can’t say that you didn’t understand .

Accountability means that you can’t say that you can’t remember .

“It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment.” Warning on Hud 1:

“It is a crime to knowingly make false

statements to the United States on this

or any other similar form. Penalties

upon conviction can include a fine and

imprisonment.”

Title Agent Doctor Lawyer

Title Agent

RESPECT

RESPECT

Challenging C.E. Courses What Could It Hurt?

What Could It Hurt?

Core Values: Friends and Family Faith Based Values Personal Experiences Virtues Business Decisions

Friends and Family

Faith Based Values

Personal Experiences

Virtues

My Greatest Mistakes: Not selective when selecting sources of business. Formed friendships with realtors and loan officers.

Not selective when selecting sources of business.

Formed friendships with realtors and loan officers.

My Greatest Mistakes: Not selective when selecting sources of business. Formed friendships with realtors and loan officers.

Not selective when selecting sources of business.

Formed friendships with realtors and loan officers.

My Heroes

My Heroes

You

You

Your Underwriter

Your

Underwriter

www.rybconsulting.com

www.title-opoly.squarespace.com

Fraud For Housing

Fraud

For

Housing

Fraud For Profit

Fraud

For

Profit

CONSUMERS Do they know enough to commit fraud without coaching from an industry insider?

CONSUMERS

Bad Guys Always Get CAUGHT ! Real estate crimes? True or False

Bad Guys Always

Get CAUGHT !

Lessons: Fiduciary of buyer, lender, and title underwriter. Maintain detailed notes. Maintain a closing registry. Disclose material facts to lender in writing - Cover letter. Investigations

Fiduciary of buyer, lender, and title underwriter.

Maintain detailed notes.

Maintain a closing registry.

Disclose material facts to lender in writing - Cover letter.

Signs: A new source of business appears. Why? You start to feel uncomfortable.

A new source of business appears. Why?

You start to feel uncomfortable.

Signs: A new source of business appears. Why? You start to feel uncomfortable.

A new source of business appears. Why?

You start to feel uncomfortable.

Survey results: 55 percent of professional appraisers surveyed reported feeling pressured to inflate property values by real estate agents and loan officers. October Research (2003)

55 percent of professional

appraisers surveyed reported

feeling pressured to inflate property

values by real estate agents and

loan officers.

Survey results: 90 percent of professional appraisers surveyed reported feeling pressured to inflate property values to levels to make deals work. October Research (2006)

90 percent of professional

appraisers surveyed reported

feeling pressured to inflate property values to levels to make deals work.

In the 2006 study, 75 percent of the appraisers surveyed reported threats of “ negative ramifications ” for lack of cooperation.

In the 2006 study, 75 percent of the appraisers surveyed reported threats of “ negative ramifications ” for lack of cooperation.

Customer … Not Always Right

Customer …

Not

Always

Right

Customer… your Worst Enemy ?

Customer…

your

Worst

Enemy ?

The above image was copied from the company’s website. Mortgage Bankers, Ltd. was indicted by a federal grand jury in February, 2007.

Title Profession : Title examination Proper disclosure Fraud Prevention

Title examination

Proper disclosure

Fraud Prevention

Best Practices: Fraud prevention Claims avoidance Litigation avoidance Class Action

Fraud prevention

Claims avoidance

Litigation avoidance