Fraud Prevention: A Critical but Overlooked Driver of Housing Affordability in New Jersey, Pennsylvania and Florida

(Christopher J. Brown CEO of ClosePoint USA LLC Summary and regional commentary based on insights from ALTA CEO Chris Morton)

Conversations around housing affordability in New Jersey, Pennsylvania and Florida usually center on interest rates, housing shortages, insurance premiums and construction costs. Those are important pieces of the puzzle. However, one essential factor often left out of the discussion is fraud prevention—and the stabilizing role title professionals play in protecting the real estate market.

As highlighted by ALTA CEO Chris Morton, fraud is not a side issue. It directly affects affordability. When fraud increases, risk increases. And when risk increases, costs inevitably rise for buyers and lenders.

That reality is especially relevant in our regional markets.

Florida continues to experience high levels of wire fraud, deed fraud and vacant land scams.

New Jersey’s dense, high-value transactions create attractive targets for cybercrime. Pennsylvania’s mix of older property records and growing redevelopment areas can present unique title challenges. These vulnerabilities do not just impact individual transactions—they influence the broader cost of lending and homeownership.

Nationally, the FBI reports billions of dollars lost annually to cyber-related fraud, while financial institutions file millions of suspicious activity reports each year.

Those numbers are not abstract. They represent real risk that must be priced into the housing system.

If fraud protections were weakened or removed, lenders would compensate by increasing rates or tightening credit. Investors would demand higher returns. Buyers would face higher legal expenses, larger down payments or fewer financing options. The cost of fraud never disappears—it simply shifts to the consumer.

This is why title insurance and strong transaction oversight remain foundational to housing stability.

Title professionals serve as one of the housing finance system’s first lines of defense. Through thorough title searches, verification protocols, wire fraud safeguards and insurance protections, we prevent hidden risks from surfacing after closing.

In fast-moving markets like South Florida, suburban New Jersey and the growth corridors surrounding Philadelphia, that stability matters. Secure transactions create confidence. Confidence lowers systemic risk. Lower systemic risk supports more predictable lending costs.

Housing affordability is not just about interest rates or supply.

It is also about trust, stability and protection. Fraud prevention is a behind-the-scenes safeguard that keeps the real estate system functioning without passing unnecessary risk onto families.

As policymakers and industry leaders look for ways to expand access to homeownership in New Jersey, Pennsylvania and Florida, fraud prevention should be recognized for what it truly is: a critical component of affordability and long-term market strength.