A survey from Ernst Publishing Company showed that a large portion of those in the title insurance industry are seriously concerned about the increases in fraudulent activity regarding mortgages.
The survey noted that approximately 40 percent of respondents thought that overall fraud in real estate transactions had jumped during the past 12 months. In addition, the top types of fraud that were noted included identity theft, foreclosure fraud, robo-signing and record integrity and loan transaction fraud.
"It's clear that lenders are viewing mortgage fraud as a very serious issue and a growing problem," said Jan Clark, senior vice president of Ernst Publishing.
The report added that only one-fifth of respondents felt that the new rules by the federal government - including the changes to the U.S. Department of Housing and Urban Development and the Good Faith Estimate had positive effects on the fraud situation.
The situation highlights the continued importance of title searches and title insurance with residential mortgages, it is possible that more would be protected against errors and other fraudulent activity.