Title Fraud and Forgery Protection Just Got Better
Fraud impacts all industries and markets, including real estate. The FBI’s Internet Crime Complaint Center (IC3) reported cyber-enabled crime and fraud resulted in losses of $174 million for the real estate sector in 2024. The average title insurance fraud and forgery claim costs more than $143,000. Title fraud and forgery can financially devastate households and their legacies, especially without title insurance in place.
As members of the American Land and Title Association (ALTA); Kentucky Land Title Association (KYLTA) and Tennessee Land and Title Association (TNLTA), the Title attorneys at Blue Note Title, LLC, keep your real estate transactions safe and protected from start to finish.
New ALTA Endorsements and Updates: Fraud and Forgery Protection
ALTA just announced two new policy endorsements designed to protect homeowners from seller impersonation fraud. These title insurance endorsements will allow new and existing homeowners to add coverage that offers post-policy protection against deed/mortgage forgery. Specifically, title insurers will cover potential legal costs to correct the public record if forged deeds or mortgages are recorded against a homeowner’s property.
Here are the details:
ALTA 49 Endorsement: Forgery – New Owner’s Policy – Residential
Purpose: The ALTA 49 Endorsement is designed to address the situation where the homeowner is purchasing an ALTA Owner’s Policy and would like post-policy coverage for deed or mortgage forgery, but where the ALTA Homeowner’s Policy is either not available, or is not offered to the homeowner.
ALTA 49.1 Endorsement – Forgery – Existing Residential Owner’s Title Policy (New Endorsement)
Purpose: The ALTA 49.1 Endorsement is designed to address the situation where the homeowner has previously purchased an ALTA Owner’s Policy and would like future coverage for deed or mortgage forgery.
If you’re buying or selling property in Kentucky or Tennessee, these added layers of financial protection are something you can trust. They’re regulated insurance products designed to help you protect one of your most important investments.
According to ALTA CEO Chris Morton, “These endorsements set the standards for forgery protection before and after closing, and build upon ALTA’s landmark homeowner’s policy of title insurance…With criminals harnessing advanced technology to perpetuate sophisticated seller impersonation schemes against unsuspecting homeowners, new products like the policy endorsements are needed to keep the American Dream of homeownership intact,”
ALTA Chief Strategy, Communications, and Innovation Officer Elizabeth Blosser adds, “These policy endorsements set a new bar for how to help consumers address these crimes… If purchased, they should provide peace of mind to homeowners by offering long-term protection from a risk that is both real and increasing.”
ALTA also updated its Best Practices framework to help title agents better identify new and emerging title fraud and forgery crimes. It suggests new industry standards for use of identity verification during real estate closings, including specialized staff training to detect impersonation attempts, stronger controls over notary and signing agent selection, additional verification steps for third-party professionals and defined protocols for responding to suspected fraud.
Title Experts You Can Trust
Working with Blue Note Title ensures your real estate transaction is protected to the highest industry standard. Buying or selling a home? Don’t leave something that life-changing to chance. Contact us to learn more about how we help you buy and sell real estate with confidence.
About ALTA
Founded in 1907 and headquartered in Washington, D.C., ALTA is the national trade association of title insurance agents, abstracters and underwriters. Their primary goals include:
Promoting the safe and efficient transfer of ownership of, and interest in, real property within the free enterprise system by creating forms for title policies and advocating for title protections.
Providing information and education to members; professionals and experts who regulate, supervise, or enact legislation affecting the land title industry; and the consumers they serve.
Read more about ALTA and their member organizations here.
