First American Corporation (New) · NYSE:FAF
First American Corporation (New) — First American Financial — Reg A Offering (October 2017)
38 slides from First American Corporation (New)'s offering presentation, Oct 5, 2017
Slide 1: Countless ways fraud can impact you and your real estate transaction
Countless ways fraud can impact you and your real estate transaction October 5, 2017 First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First Ameri
Slide 2: Agenda
AGENDA • Common Characteristics • Signing Authority • Foreclosure Hijacking • Wire • Cyber Security ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 3: Signing Authority Fraud
Signing Authority Fraud First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, and First American Title are registered
Slide 4: Entity Authority Issues: Limited Liability Companies
ENTITY AUTHORITY ISSUES LIMITED LIABILITY COMPANIES • Individuals masquerading as LLC members • Utilization of falsified operating agreements • Filing a falsified statement of authority with the SOS • Utilization of a similar LLC name from another state • Revival of an abandoned LLC name: Delaware c
Slide 5: Corporation Fraud
CORPORATION FRAUD • Assuming the identity of a corporate officer • Fraudulent mortgage releases • Resolutions requiring the approval of multiple officers • Submission of a Resolution that is completely fraudulent • Corporation not in good standing without authority to deed real property First Americ
Slide 6: Trusts
TRUSTS • False Trust Agreement or Certificate of Trust • Trust property with no activity for a significant time after death of Settlor/Trustee. New trustee fraudulently asserts themselves in as new trustee. • Individuals who draft the Trust or relatives may fraudulently insert themselves in as trust
Slide 7: Elder Fraud & Estate Fraud
ELDER FRAUD & ESTATE FRAUD • Undue influence exerted upon elder owner o Look for signs of an elder shielded from involvement • Forged doctor opinions • Estates often targeted o Property owner no longer occupies o Estate is often inactive and slow moving o Unoccupied, unencumbered property always a t
Slide 8: Foreclosure Hijacking
Foreclosure Hijacking First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, and First American Title are registered tr
Slide 9: Irregularity in Foreclosure Proceedings
FORECLOSURE HIJACKING Irregularity in Foreclosure Proceedings • Foreclosure Hijacking – What is the scheme? • How do fraudsters take advantage? • How are fraudsters profiting? • Real-world examples • Chain of title with questionable documents • Payoff hijacking attempt ©2017 First American Financial
Slide 10: Legitimate foreclosure scenario: Mr. Hill
In this scenario, Mr. Hill has fallen on hard times and is unable to keep up with the payments on his property. Bank gives notice to Mr. Hill and begins the foreclosure process Mr. Hill is still unable to pay, so the Bank holds a sale of the property. By either Court Order or Trustee’s Deed, the pro
Slide 11: Foreclosure hijacking process
Instead of the property going through the legitimate foreclosure process, hijackers take over and attempt to sell the property to a straw buyer or refinance the ill-gotten property. Bank gives notice to Mr. Hill and begins the foreclosure process Sometime after default, Fraudster will but before the
Slide 12: How are the fraudsters profiting?
FORECLOSURE HIJACKING How are the fraudsters profiting? • Sale to a Third Party • Sale proceeds • Taking out a NEW loan • Loan proceeds • Foreclosure Rescue/Loan Modification Consultants • Upfront fees • Payoff Hijacking • Intercepting loan payoff funds ©2017 First American Financial Corporation and
Slide 13: Example chain of title documents
FORECLOSURE HIJACKING Let’s take a look at an example chain of title documents to see exactly how the bad guys are operating. First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibi
Slide 14: Foreclosure Hijacking
FORECLOSURE HIJACKING The hijacking begins with a legitimate Deed of Trust that is in the foreclosure process. Fraudsters assign the Deed of Trust to themselves, substitute themselves as the new trustee, and then record a Trustee’s Deed naming themselves as grantee. ©2017 First American Financial Co
Slide 15: Assignment of Deed of Trust
FORECLOSURE HIJACKING Assignment of Deed of Trust • Recorded after Notice of Default & Notice of Trustee’s Sale • Purports to assign the beneficial interest of the Deed of Trust to WEST H&A LLC • Signed by “nominated substitute trustee” ©2017 First American Financial Corporation and/or its affiliate
Slide 16: Substitution of Trustee
FORECLOSURE HIJACKING Substitution of Trustee • Recorded 12 days after the Assignment of Deed of Trust • Purports to substitute Warranted Effectuation of Substitute Transferee Inc. as trustee • Signed by “CURRENT BENEFICIARY: WEST H&A LLC” ©2017 First American Financial Corporation and/or its affili
Slide 17: Trustee's Deed
FORECLOSURE HIJACKING Trustee’s Deed • Recorded 1 day after the Substitution of Trustee • Purports to grant the property to WEST H&A LLC • Signed by WARRANTED EFFECTUATION OF SUBSTITUTE TRANSFEREE, INC. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 18: Payoff Hijacking
FORECLOSURE HIJACKING Payoff Hijacking • $37 Million Refinance Transaction • Existing Deed of Trust in early stages of foreclosure • Fraudsters record an Assignment of Deed of Trust • Assigning the beneficial interest of the Deed of Trust to themselves • Hijackers then provided a demand to the title
Slide 19: In conclusion…
FORECLOSURE HIJACKING In conclusion… • Not a new scheme • Scope & brazen manner in which some groups operate • Subtle scam designed to confuse • Target properties in foreclosure • Do not represent that they are the lenders of record • Record documents to mislead & give impression of authority ©2017
Slide 20: Anatomy of Wire Fraud
Anatomy of Wire Fraud First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, and First American Title are registered tr
Slide 21: What is wire fraud?
WHAT IS WIRE FRAUD? The misappropriation of funds by deceiving financial institutions and their customers into conducting wire transfers. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 22: Anatomy of Wire Fraud
ANATOMY OF WIRE FRAUD Attorney, Commercial Broker, Seller or Purchaser receives phishing email ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 23: Red Flags/Warning Signs
ANATOMY OF WIRE FRAUD Red Flags/Warning Signs • Change in Wire Instructions • Email address resembling a customer’s email account • Previously Known: [email protected] • New Communication: [email protected] • Foreign Bank • Emailed instructions marked as “immediate,” “urgent,” “high impo
Slide 24: FBI IC3 statistics on email fraud
ANATOMY OF WIRE FRAUD According to the FBI’s Internet Crime Complaint Center (IC3) From October 2013 through December 2016, the FBI has reported over 40,000 incidents of email based fraud targeting over $5.3 billion in consumer funds www.ic3.gov ©2017 First American Financial Corporation and/or its
Slide 25: What You Can Do…
ANATOMY OF WIRE FRAUD What You Can Do… • Protect your email and use strong passwords • Verify email headers • Call the other party to confirm • Check your email for signs of compromise • Add multifactor authentication • Beware of public wifi / go-go internet • Immediately report fraudulent activity
Slide 26: Let's Talk About Cyber Security
Let’s Talk About Cyber Security First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, and First American Title are reg
Slide 27: Cyber Game Changers
CYBER GAME CHANGERS ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 28: Attacker Techniques
CYBER SECURITY Attacker Techniques • Hacking • Manual or Automated • Takes advantages of weaknesses in systems • Social engineering • Takes advantage of human weaknesses • Malware or Viruses • Physical access ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE
Slide 29: Cyber Security - Phishing
CYBER SECURITY - PHISHING • Phishing refers to an attack that uses email or a messaging service (like those on social media sites) that tricks or fools you into taking an action, such as clicking on a link or opening an attachment. • Phishing often involves a combination of solid marketing and effec
Slide 30: Common Characteristics of Phishing Schemes
CYBER SECURITY – PHISHING CHARACTERISTICS Common Characteristics of Phishing Schemes • Generic greeting • Forged link • Requests personal information or includes an attachment to view • Sense of urgency • Bad grammar ©2017 First American Financial Corporation and/or its affiliates. All rights reserv
Slide 31: Same problem - different device
CYBER SECURITY – SMSishing Same problem - different device ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 32: Cyber Security - What You Can Do
CYBER SECURITY – WHAT YOU CAN DO • Don’t accept invitations from people you don’t know • Don’t click on any URL links • Be aware of URL shorteners • Don’t download attachments • Review your privacy settings for opportunities ©2017 First American Financial Corporation and/or its affiliates. All right
Slide 33: Cyber Security - Malware/Viruses
CYBER SECURITY – MALWARE/VIRUSES • Simply put, malware is software -- a computer program -- used to used to perform malicious actions • The goal is to make money from your infected computer or device, perhaps by selling the data they’ve stolen from you, sending spam emails, launching denial of servi
Slide 34: Cyber Security - What You Can Do
CYBER SECURITY – WHAT YOU CAN DO • Install anti-virus software from trusted vendors. • Anti-virus cannot block or remove all malicious programs. • Make sure your operating systems, applications, and devices are enabled to automatically install updates. • Only download and install apps from trusted o
Slide 35: Cyber Security - What You Can Do
CYBER SECURITY – WHAT YOU CAN DO • Don’t use the same password for Facebook, LinkedIn, your office and your bank • Use of strong passwords are essential to protecting yourself • Consider using password safes • Avoid sharing passwords • Develop a strong password scheme/Passphrase • Visit https://hows
Slide 36: Questions
QUESTIONS ? ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 37: Check out the latest industry alerts
CHECK OUT THE LATEST INDUSTRY ALERTS CFPB Announcement http://bit.ly/2wtdtp0 ALTA Announcement http://bit.ly/2g2sJmy Use This Video to Warn Consumers About Wire Fraud ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Slide 38: Countless ways fraud can impact you and your real estate transaction
Countless ways fraud can impact you and your real estate transaction October 5, 2017 First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First Ameri
First American Financial — Reg A Offering (October 2017) on 6ix