By: John L. Hosack and Jason Goldstein
“Fraud and deception by “fraudsters” who pose as “borrowers” is rampant and very costly to lenders. While most lenders attempt to insulate themselves from the risks of fraud and deception by purported “borrowers” through the use of well-drafted escrow instructions and title insurance policies, the escrow agents and the title insurers frequently attempt to avoid liability to the lender. Therefore, the knowledgeable lender must be prepared to avoid the traps and tricks of the purported “borrower” and must also anticipate the efforts by the escrow agent, title insurer and others to avoid liability to the lender.”
