Bulletin: NY000396

Date:
February 05, 2009
To:
All New York State Office Counsel, Managers and Agents
RE:
Fraudulent MERS Satisfactions and Fraudulent Mortgage Satisfactions

A number of MERS satisfactions have turned out to be fraudulent.  It is important to carefully examine the record when a satisfaction is recorded for a MERS held mortgage or any other mortgage and no contemporaneous financing is found of record.

There are ways to spot fraudulent satisfactions:

  • a mortgage satisfied in a short period of time after being made, with no contemporaneous refinance;
  • there is no existing mortgage of record and a prior mortgage, or mortgage in the chain held by MERS has been satisfied;
  • request the lender to provide the credit report to determine if the satisfied mortgage is still listed as open on the credit report
  • check the actual document to determine who submitted the satisfaction for record, where the document was returned and the validity of the notary on the signature.

If you have any doubt, contact the legal department.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NL000003 Forgeries
 
NY000365 Fraudulent MERS Releases
 
SA2008015 Fraudulent MERS Releases
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None