Old Republic Title partners with CertifID to combat mortgage payoff fraud
Old Republic Title has announced a new strategic partnership with CertifID, a leading wire fraud protection company, aimed at curbing the increasing issue of mortgage payoff fraud within the title industry. This collaboration marks a significant step towards enhancing security measures in real estate transactions, which have seen a notable rise in fraud-related losses, with the real estate sector experiencing losses totaling $446 million according to a recent FBI public service announcement.
The partnership comes in response to concerning data highlighted by the American Land Title Association (ALTA). Approximately 17% of title companies have reported transferring funds to incorrect accounts due to fraudulent activities, with nearly half of these companies experiencing such incidents more than once. Despite these significant security breaches, less than half of the title companies have implemented wire verification services, which are considered best practices within the industry.
Mortgage payoffs represent the largest source of loss for title and real estate law firms, with the median loss per incident around $247,000. This is largely due to the large transaction sizes involved, the complex landscape of lenders, and the inconsistent application of preventive technology across the sector. The new service package offered by Old Republic Title and CertifID is specifically designed to tackle these challenges by integrating advanced software solutions, insurance coverage, and recovery support services to safeguard against fraud.
Carolyn Monroe, President and CEO of Old Republic National Title Holding Company, expressed enthusiasm about the partnership, emphasizing the company’s commitment to innovation and secure transactional processes. “Old Republic Title continues to focus on innovation to enable the success of our direct and agency operations,” Monroe stated. “We are excited to leverage the comprehensive approach to fraud prevention that CertifID provides.”
Tyler Adams, CEO of CertifID, also commented on the collaboration, noting the proactive measures being adopted by Old Republic Title to mitigate risks and enhance operational efficiencies. “CertifID applauds the leadership by Old Republic Title to invest in solutions that can reduce risk while enabling efficiency in their direct and agency operations,” Adams said. “We look forward to working together to truly solve the issue of payoff fraud seen across the industry.”
The strategic partnership between Old Republic Title and CertifID is a pivotal development in the real estate industry’s fight against wire fraud. By adopting integrated fraud prevention systems, these companies are setting a standard for the industry that not only prioritizes security but also fosters trust among clients and stakeholders involved in high-stake real estate transactions.