Consumer and Industry Advocates Highlight Deed Fraud Prevention

News provided by

Aug 07, 2024, 08:00 ET

States should strengthen protections for homeowners and buyers

WASHINGTON, Aug. 7, 2024 /PRNewswire/ -- The American Land Title Association (ALTA), AARP, Mortgage Bankers Association (MBA), National Association of Realtors (NAR), National Notary Association (NNA) and Property Records Industry Association (PRIA) released a new issue brief with recommendations to help combat the rise in deed fraud.

Although deed fraud can include a variety of real estate-related crimes, most schemes involve the impersonation of a property owner and the recording of fake or forged documents in local land records. These crimes result in legal costs, reduction in equity or property value and even property loss. According to the Federal Trade Commission (FTC), fraud losses in 2023 cost U.S. consumers more than $10 billion, of which $2.7 billion is attributed to imposter scams.

"Protecting the property rights of all Americans—and what is likely their largest financial investment—is of utmost importance," said Elizabeth Blosser, vice president of government affairs at ALTA. "The amount of money lost to deed fraud and other real estate-related scams simply is not acceptable. We must combat these threats."

"Older Americans are at higher risk of deed theft and the results are financially and emotionally catastrophic," said Jenn Jones, vice president of financial security and livable communities at AARP. "We must do more to protect unsuspecting homeowners and homebuyers against criminals. In a world with increasingly rampant fraud, educating the public and advocating for stronger local and state consumer protections is critical."

The issue brief outlines numerous ways to help prevent and mitigate deed fraud, including:

Providing identity verification options for notarizations performed in the physical presence of the notary
Providing better security for access to public records
Requiring continuing education for real estate professionals and notaries
Allowing local government offices to report suspected fraudulent documents to law enforcement
Offering property owners free access to property recording notification systems

"Deed fraud, along with other real estate crimes, remains pervasive," NAR said. "The National Association of Realtors, along with other industry leaders, are committed to providing continuing education and resources to support consumers and industry professionals in understanding this issue and working collaboratively to combat these real estate scams."

"The National Notary Association believes these owner/seller impersonation deed fraud policy recommendations are reasonable and necessary steps that should be adopted to protect property owners, real estate professionals and even Notaries who are victims of these crimes," said Bill Anderson, vice president of government affairs at NNA. "The NNA urges Notaries in every state to learn the warning signs of owner/seller impersonation deed fraud and be vigilant in verifying the identities of all grantors seeking notarization of real property convenance deeds."

"PRIA is proud to partner with these other great organizations as we continue to battle the topic of deed fraud," said PRIA President Dan Shmukler. "Collaboration is a key mechanism to solve any problem, and deed fraud has impacted and can impact anyone. PRIA looks forward to bringing its resources and knowledge to this conversation."

To support victims of these crimes, ALTA, AARP, MBA, NAR, NNA and PRIA are calling for legislatures to strengthen data gathering needed to help law enforcement more easily identify deed fraud victims; increase the resources given to local, state and federal law enforcement to combat this growing threat; and provide resources and expedited processes for victims to reestablish title in the legitimate owner's name.

Read the issue brief, What is Deed Fraud.

Media Contact:
Megan Hernandez
[email protected]

SOURCE American Land Title Association