Skip to main content

Loan Application Defects Continue to Decrease

Phil Hall
Jul 29, 2016
Loan quality continues to gain strength, as witnessed in data released from the First American Loan Application Defect Index for June

Loan quality continues to gain strength, as witnessed in data released from the First American Loan Application Defect Index for June.

Last month, the First American Loan Application Defect Index decreased 1.4 percent from May and dropped by 12.2 percent as compared with June 2015. The Defect Index for refinance transactions in June fell by 3.2 percent month-over-month and is 15.5 percent lower than a year ago, while the Defect Index for purchase transactions dipped 1.2 percent month-over-month and tumbled by 11.1 percent compared to a year ago.

The greatest level of increased loan defect frequency among the states occurred in Maine (up 14 percent) and North Dakota (up 13.6 percent), while greatest decrease in defect frequency took place in Michigan (down 31.4 percent) and Florida (down 21.8 percent). Among the 50 major metro areas, the only market with year-over-year increase in defect frequency is was St. Louis (up 9.9 percent), while Detroit had the highest year-over-year decrease in defect frequency (down 35.9 percent).

“The Defect Index has fallen 5.3 percent over the last three months, and this trend shows no sign of abating,” said Mark Fleming, chief economist at First American. “The index has been reaching new lows this year, continuing its long-term trend. Since its inception, the Defect Index has been consistently trending lower, apart from the increases in risk in 2013 and early 2015.”

Published
Jul 29, 2016
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021