A new annual report from CoreLogic shows multi-closing fraud risk held steady in 2020 after having decreased the past several years.
“Multi-lien fraud is an extremely profitable scam that takes advantage of the lag between closing and records to solicit multiple loans on a single property,” the CoreLogic report stated. “According to the CoreLogic Multi-Close Alert Program (MCAP), 2020 is projected to have a similar level of findings as was seen in 2019. Some lenders have scaled back their home equity lending in 2020 due to economic conditions.”
But while multi-closing fraud risk is holding steady, the report showed identity fraud risk is down a full 14.7% in 2020 when compared to 2019. Identity fraud occurs when an applicant’s identity and/or credit history is altered, a synthetic identity is created or a stolen identity is used to obtain a mortgage.
One factor that could be playing a role in the reduction in identity fraud is the rise of remote online notarizations in 2020.
For example, a partnership between Realogy Title Group and Notarize that has sought to accelerate the adoption of remote online notarizations hit a milestone in the first half of 2020.
How 2020 continues to impact mortgage closings
We sat down with Altisource Vice President of Product Ben Hall to discuss the increased adoption of remote online notarizations.
Presented by: Altisource
Spurred by the impact of the coronavirus, the partnership closed more than 1,600 RON transactions in the first half of 2020, a more than 200% increase over the 500 RON transactions that they closed in all of 2019, the companies previously told HousingWire.
When using RON technology, users are required to answer a series of questions that are taken from a soft credit pull in order to confirm their identity. They also must enter their information for a quick scan to confirm their identity against a database and the entire transaction is performed on video which, in many states, is kept on file for at least five years.
RON experts say these efforts have worked together to virtually eliminate identity fraud from the real estate closing.
