Choose Your Title Insurance Company Wisely to Avoid Sly Deals

One Dishonest Title Insurance Agent Stole +$7M from Borrowers

What happens when you place your trust in a dishonest title agent? In the most extreme case, a dishonest title agent was responsible for pocketing over $7 million in clients’ money.

One dishonest title agent managed to steal millions of funds.

In Pennsylvania, the former owner of a title insurance company was sentenced to 11 years in prison for stealing $7.7 million in client funds. These funds were scheduled to be used to pay off mortgage loans associated with his clients’ real estate closings.

The title agent responsible for the theft operated Crystal Title Agency LLC in Woodbridge, New Jersey. The owner pleaded guilty to second-degree theft and misconduct, then surrendered his New Jersey insurance license and entered a civil consent judgement to pay $7.7 million to First American Title Insurance Company, which was responsible for paying the funds stolen from his clients.

Between January 2014 and May 2014, the title agent admitted that he had failed to use clients’ funds to complete payments on over 28 outstanding loans for mortgaged properties. Investigators found that he had used the stolen funds for his own personal expenses (travel, entertainment, luxuries, and rent) or those business expenses attached to his title agency. In addition, funds from new mortgages and closings were continuously stolen to keep up with older mortgages that were failed to be paid as a result of his theft.

How can you avoid the nightmare when choosing a title agent?

Working with a Respected Name in the Industry

Real estate agents and lenders often have a “go-to” title insurance agent. You need a trusted and reliable underwriter who delivers with accuracy and on-time. With all the competition these days, you can’t grow a well-respected brand name without offering quality title insurance services. It’s important to find a title insurance company that has a long track record of following through with what’s expected.

Focusing on Customer Service

Many title insurance agents try to cut the customer out of the equation. In essence, they just want your money. Avoid this issue by sticking with a title insurance company that puts the customer first . Excellent customer service is a great indicator of a trustworthy business partner that’s focused on the needs of the client. A title insurance agent that’s concerned with customer service is offering more than just trustworthy closing services. Customer satisfaction should also be important to your title agent.

Assuring Client Security

One overwhelming indicator that your title insurance company has your best interests in mind is if they take measures to assure client security. A title insurance agent that performs regularly audits has taken actions to protect customer privacy and sensitive information. This means they have invested in the security of your investment to assure that your funds and information are in a safe place. Title insurance agents who perform SOC-1 audits are concerned about upholding security and standards in compliance with regulations for clients.

Do you need a reliable title insurance agent?

Work with a title insurance company you can trust. Contact us to partner with Bay National Title Company for an experienced team and a better closing experience.

SOURCES:

Woodbridge Title Company Owner Sentenced to 11-year Prison Term