Title insurance vital to reduce risk on refinances

"Mortgage refinance demand is 111% higher than last year, a surge fueled by declining mortgage rates and renewed interest from homeowners looking to improve their financial position. Refinancing can certainly be a smart movea way to lower monthly payments, consolidate debt, or tap into home equity. But this sense of routine can mask the very real risks involved. Many assume a refinance is simply a streamlined, less complicated process compared to purchasing a home."

"The latest Analysis of Claims and Claims-Related Losses in the Land Title Insurance Industry, conducted by global consulting and actuarial firm Milliman Inc. for the American Land Title Association (ALTA), shows that refinance transactions carry meaningful risk exposure. The study, which examined a decade of title insurance claims, found that fraud and forgery tied specifically to refinances have risen sharply. Today, they represent 40 percent of all title losses and expenses."

Mortgage refinance demand has surged 111% year-over-year as homeowners seek lower payments, debt consolidation, or to tap home equity. Refinancing offers financial benefits but also carries significant title risks. Analysis of a decade of title insurance claims shows fraud and forgery tied to refinances have risen sharply, representing 40 percent of title losses and expenses. Refinance-related fraud and forgery claims average more than $207,000 per case and are nearly seven times costlier than other claim types. Such schemes often evade public-records searches, making title insurance and title professionals essential safeguards during refinancing.

Read at www.housingwire.com