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Richard C. Roney, Jr., 46, former title company owner, Laurel Springs, New Jersey, was charged by information with four counts of wire fraud related to an alleged scheme that cost lenders more than $750,000 and involved escrow theft.

Escrow theft, also known in the industry as escrow defalcation, causes significant and immediate losses to homeowners and lenders. On June 4, 2012, Demotech published a study on this form of fraud entitled Escrow Theft: Today’s Challenge in Title Insurance.  The Study examined the relationship between strong state regulations and escrow theft and concluded, unsurprisingly, that when states that adopted strong licensing requirements, strict oversight and financial responsibility regulations regarding escrow agents, escrow theft loss ratios were lower.  Continue Reading…