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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 38 January 2025 F E A T U R E S T O R Y cial loss due to title defects, not many real- ize how it also protects them from fraud. Utilizing a title monitoring service that alerts property owners to any changes in title status can be a helpful strategy, as it acts as sort of an early warning system for any suspicious activity. Protecting the personal information of homeowners is also essential. For consumers, this means securing online accounts with strong, unique passwords, safeguarding home Wi-Fi networks, and being cautious about sharing personal details. This helps prevent identity theft, which often precedes property transfer fraud. For the broader industry, using secure communication channels for sharing and signing documents and encouraging the use of encrypted plat- forms that protect sensitive information can help prevent not just title fraud but data breaches as well. The Power of Partnership W hile awareness, education, and enhanced security measures can help defend against title fraud, a lender's choice in title providers can be a huge difference maker. The question is how to know you have the right title partners in place. For starters, a competent title partner should have demonstrated expertise in conducting deep, meticulous research into title issues. This entails delving deep into the history of a property to unearth any irregularities or historical discrepan- cies that aren't immediately apparent to the untrained eye, such as inconsistencies in the description of a property, anoma- lies in its ownership history, or unusual changes in recorded documents. Local market expertise is another indispensable quality. Real estate markets are inherently local, and fraud trends often vary significantly from one market to another. In most cases, a title provider with a deep understanding of local regu- lations and common practices in the areas in which it operates is far better equipped to spot title fraud than a provider that doesn't have actual boots on the ground. A title provider's use of advanced technology and the practice of contin- uously updating its tools and method- ologies to stay ahead of fraud trends is equally valuable. This may involve investing in advanced data analytics to detect unusual patterns in property transactions and developing or adopting new software and digital tools that enhance borrower and document verifi- cation processes. The importance of choosing a title partner that emphasizes communi- cation and transparency cannot be overstated, either. A title provider that communicates clearly, consistently, and efficiently throughout the entire transaction ensures that all stakehold- ers, including borrowers, remain in the loop and can make informed decisions quickly. This also enables potential title issues to be addressed promptly, which reduces the chances of fraud slipping through the cracks. Lastly, the commitment of a title firm to customer service is a good sign that it values its partner and borrower relationships and will go the extra mile to confirm all aspects of the title and closing process are handled with the utmost care and diligence. Delivering an excellent experience also builds a foun- dation of trust, which becomes critical when navigating seller impersonation fraud and other scams involving title. While it should be clear that com- bating property transfer fraud requires proactive measures, continuous vigi- lance, and robust collaboration, the rise in these scams also calls for a renewed commitment by the real estate industry to ensure a secure, healthy housing mar- ket. After all, while it may be impossible to completely eradicate title fraud, it is completely possible to give each transac- tion the scrutiny it deserves. For every transaction, there should be rigorous checks that include verifying the true identities of all parties, a thorough examination of the property's history, and cross- referencing all provided documents with public and private databases.