08.25.08

Title Underwriter Refuses Claim for Fraudulent Deed

Posted in Education at 2:13 pm by Jeanne

The Chicago Tribune has a MUST-READ Article for all title people. A bizarre case where the title underwriter, Ticor, sub-contracted out a title search for a $360,000. Mortgage transaction. Title work came back clear, the deal closed, docucments were recorded, and a title policy issued.

The entire transaction was fake and no payments were ever made. It was later determined that a backdated deed that might have been caught on the title search, transferred title from a deceased woman, one Amelia Johnson. The deed ran to Rhonda Evans, sister to the loan officer who placed the mortgage with Countryside. Reportedly, the fake deed should not have been all that hard to spot because the deceased’s name was spelled two ways and the alleged warranty deed, dated 1996, was recorded much later. The deed was also notarized by Mae Evans, who is the mother of Rhonda Evans.
It all came into public view when the deceased’s son’s body was found dead in the house and reports hit the new media.

In any case, Ticor is refusing to honor the policy, based on the idea that the loan never should have made it out of underwriting at the lender. A defense that is foreign to the title industry, and certainly does not fit with the traditional thought that title companies insure against fraudulent documents.
It will be a case the industry will follow with great interest. Stay Tuned…

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