New Product Alert! Appraisal and Strawman Transfer Fraud Detection Solution for Loan Originators and Investors.
ProTitleUSA has introduced a cost-effective product designed to detect fraudulent property transfers during both the loan origination and loan acquisition stages.
This new Appraisal Fraud Detection solution is specifically tailored for originators and institutional investors involved in DSCR loans, Fix-and-Flip financing, Rental Term Loans (RTL), and Cross-Collateralized loan structures.
The need for such a solution has grown following the emergence of a multi-LLC appraisal fraud scheme in Baltimore, which has raised significant concerns among lenders and funds.
This fraudulent activity, commonly referred to as a strawman purchase deed scheme, involves multiple limited liability companies collaborating to artificially inflate property values. The process typically entails repeatedly transferring a property among the LLCs, supported by an appraisal company willing to provide valuations that legitimize the transactions on paper. In many cases, the targeted properties are located on the fringe of desirable neighborhoods but remain in economically distressed areas.
When appraisals are conducted remotely, without granular, block-by-block market insight, these inflated valuations can appear credible-allowing fraudulent transactions to proceed undetected.
As a result, numerous lenders and investment funds have temporarily halted DSCR loan origination and acquisition in Baltimore, Philadelphia, Detroit, New Orleans, and other urban markets with similar risk profiles.
ProTitleUSA’s new product directly addresses this challenge by identifying suspicious transfers early, reducing exposure to appraisal-based fraud schemes, and protecting portfolio integrity. A detailed podcast exploring this fraud type, along with advanced detection strategies, will be released by ProTitleUSA Team in the near future.
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ProTitleUSA has introduced a cost-effective product designed to detect fraudulent property transfers during both the loan origination and loan acquisition stages.
This new Appraisal Fraud Detection solution is specifically tailored for originators and institutional investors involved in DSCR loans, Fix-and-Flip financing, Rental Term Loans (RTL), and Cross-Collateralized loan structures.
The need for such a solution has grown following the emergence of a multi-LLC appraisal fraud scheme in Baltimore, which has raised significant concerns among lenders and funds.
This fraudulent activity, commonly referred to as a strawman purchase deed scheme, involves multiple limited liability companies collaborating to artificially inflate property values. The process typically entails repeatedly transferring a property among the LLCs, supported by an appraisal company willing to provide valuations that legitimize the transactions on paper. In many cases, the targeted properties are located on the fringe of desirable neighborhoods but remain in economically distressed areas.
When appraisals are conducted remotely, without granular, block-by-block market insight, these inflated valuations can appear credible-allowing fraudulent transactions to proceed undetected.
As a result, numerous lenders and investment funds have temporarily halted DSCR loan origination and acquisition in Baltimore, Philadelphia, Detroit, New Orleans, and other urban markets with similar risk profiles.
ProTitleUSA’s new product directly addresses this challenge by identifying suspicious transfers early, reducing exposure to appraisal-based fraud schemes, and protecting portfolio integrity. A detailed podcast exploring this fraud type, along with advanced detection strategies, will be released by ProTitleUSA Team in the near future.
Subscribe to: