Mortgage Origination Fraud and Real Estate Title Insurance Fraud Risk Are Prevalent:
Determine If Local Government Parcel Database, or Cadastre Breach Has Occurred Affecting Chain of Title or Ownership or Real Property
The general business activity and principal services or commercial enterprise of Title Land Edification, LLC (hereinafter “TLE”) are categorized as part of the real estate property records, insurance, and financial services industries.
TLE has created a sophisticated system to deliver timely mail and electronic notifications to subscribers regarding information on local government data breaches that have or are likely to affect real property’s chain of title, including changes in or alterations to registered parcel identifiers. These documents are stamped or affixed by an authorized governmental entity before being recorded in a local government public land registration system, including real estate tax collection, assessment, and public land title recordation management database systems that can potentially influence the fiscal cadastre, tax map system, escrow, and tax impound accounts associated with a property or title.
A fiscal cadastre is comprised of at least three components: (1) a graphical database and tax map indicating the size and lex situs location of each parcel of land; (2) a register providing data on land ownership, assessed value, chain of title history, and taxes; and (3) a parcel numbering system connecting the graphical and registrational data.
When in the market to purchase real property or land, prospective property owners pay professional title agents, title insurance firms, abstract companies, and/or attorneys authorized on behalf of a title insurer costly fees to enable them to conduct comprehensive searches of recorded ownership of and liens filed against a given property. These agents then issue a title insurance report or policy, which guarantees the lien position of the secured lender, or provide a title opinion, commitment, or binder, which summarize current and historical data regarding the ownership of the subject property drawn from public records, statutes, ordinances, and court decisions to guarantee that no one except the seller has a valid claim to the property.
Evidence suggests that local government recording policies and errors negatively impact consumers, and this trend is likely to continue. Through disclosure of internal and public government records, including sensitive and confidential protected personal information (PPI) and personally identifiable information (PII), consumers nationwide have incurred economic disadvantage and diminished reputation. It is impossible to calculate the scope and extent of this harm. We do know, however, that the harm is real, and it is extensive.
Legal disputes often include the determination of which party holds a land title when property loss occurs. Before the implementation of the Uniform Commercial Code (UCC) in 1952, the concept of the title was critical in deciding the rights and legal obligations of all parties to a real estate contract and, perhaps more importantly, who bore the risk of loss.
Deeds related to first lien mortgages and other documents involved in mortgages (e.g., paper promissory notes) are not merely missing in the electronic National Mortgage Rights Registry: they do not exist. Without these critical mortgage-related documents, a foreclosure cannot be completed. Therefore, tens of millions of mortgage loans registered in the electronic National Mortgage Rights Registry have most likely been fabricated: these documents do not exist because they were intentionally destroyed and the purported lenders, members of the electronic National Mortgage Rights Registry, had no interest in the property; the alleged loan; the original promissory note, initially listed as “missing” in most cases before being converted into an electronic promissory note; the underlying collateral (e.g., mortgage); or the obligation itself. Many original mortgage loan documents were destroyed by members of the financial services industry themselves so that vital fiscal cadastre associated with real property (e.g., parcel identifiers) could be altered. In short, they have been and are still compromised.
Further, as a result of the 2008 global financial crisis, public land record systems are no safer now.
A title insurance policy protects the insurer from loss of title interest in, or ownership of, a property due to legal flaws and is required if the real property is under a mortgage. The most common kind of title insurance is lender’s title insurance, which is paid for by the borrower but only protects the lender. Such policies are often issued by members of the electronic National Mortgage Rights Registry.
A local governmental entity’s fiscal cadastre usually refers to the official register of the size, location, ownership, and value of each real property parcel within a given jurisdiction. It is thus inextricably intertwined to the property’s legal description, escrow and tax impound accounts, lien, and chain of title.
Often performed by professional title agents, title insurance firms, abstract companies, or attorneys, escrow is defined as the impartial third-party handling of funds, documents, and tasks specific to settlement or closing, as delineated in the real estate sales contract or purchase agreement. The purpose of escrow is to facilitate the transaction by managing the disbursement of funds and documents. Accordingly, it is directly related to the local government’s public land registration systems.
Regrettably, we discovered that prospective property owners never learn if there has been a breach in the local government’s fiscal cadastre, tax map system, registered tax map, or parcel identifiers; the property’s chain of title; nor any other sensitive and confidential PPI and PII.
Once an unsuspecting buyer’s contract offer on a home or land has been accepted by the seller, an escrow impound account is set up, and the transaction is then placed into escrow. Property taxes and insurance for a mortgage loan are linked to the escrow impound account, which is inextricably intertwined to the legal and registered parcel identifiers of the fiscal cadastre system in the jurisdiction where the real property is situated.
Fortunately, prospective and current owners of real property within the jurisdiction of each county-level registrar of deeds, county clerk, or clerk of the court office nationwide can now sign up for our innovative services, which will flag lien and property fraud. Subscribers to our TLE eNoteFraudAlert service in particular will be notified via email or the US Postal Service every time there has been an alteration to or deletion from the registered tax map and parcel assessor identification numbers inextricably intertwined to the taxable situs address and chain of title affecting the ownership of real property. Subscribers may also elect to be connected to a network of 3,524 local registration and recording jurisdictions across the US. Our TLE eNoteFraudAlert services are offered at low cost or for free, depending on the terms of the subscriber.