Mortgage Refinances Have Significant Fraud Risks, Study Shows

November 18, 2025

Fraud and forgery claims tied to refinance transactions have risen considerably in recent years, representing over 40% of all title insurer losses and expenses, according to a new study released by global consulting and actuarial firm Milliman Inc. The study, commissioned by ALTA, also shows that the average cost for fraud and forgery claims is almost seven times higher than all other claim types from refinance transactions. 

For refinance transactions, fraud and forgery claims now average almost $207,000. These two specific issues cannot be identified through public records searches. 

“This study underscores that refinances are by no means risk-free,” said ALTA CEO Chris Morton. “Fraud and forgery, which cannot be detected through a public records search, are actually more common and more costly in refinance transactions compared to purchase transactions. Title professionals and title insurance play a critical role in protecting homeowners and lenders from these risks, leveraging technology and expertise to prevent catastrophic financial losses and create certainty in the real estate market.”

Key findings from the study:
  • Fraud and forgery claims account for over 40% of the total cost of refinance-related claims, issues not discoverable through a public records search.
  • The average cost of fraud and forgery claims is nearly seven times higher than all other refinance claim types.
  • The cost to defend claims, like those related to elder financial exploitation, is substantial and adds significantly to overall losses.
  • Lender title policies provide critical protection against hidden risks like fraud (23%) and forgery (16%), along with protecting lien priority (15%), which is the third-most-common claim on lender’s policies after fraud and forgery.

For this study, the participating title insurance underwriters represent over 90% of the industry’s annual premium volume in 2023. The claims data provided by participants reflects data on nearly 162,000 claims (including purchase and refinance transactions), which represents approximately 80% of the industry’s total number of reported claims associated with policies issued between 2014 and 2023.


Contact ALTA at 202-296-3671 or [email protected].