UK Underwriter Firm to Offer Cover for Mortgage Fraud
In the UK at least, firms like the Stuart Title Guaranty Company have offered coverage for insurance fraud in the area of mortgages. Fraud in that area of mortgages is a true risk and loss for lenders for they stand to loose a lot from fraudulent transactions. Altered deeds are one of the most problematic for lenders and unlike in the US where the bubble burst well before anyone can take action or measures to control them, the UK businesses have managed to keep one step ahead of these criminals. Insurance for mortgages would have stricter qualifications and investigations thus preventing fraud from taking lenders by surprise. Underwriters were to blame in the US for the failure of the industry due to too many loans to too many people who didn’t have enough money to pay off their mortgages. Even with foreclosures, the lenders are left with properties that are not in viable form (the viable form being in liquid capital or cash) that they can directly introduce into their cash flow leading to the many bankruptcies.