Skip to main content

Loan Defect Index Up 3.9 Percent

Phil Hall
Apr 28, 2017
The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage applications in rose by 3.9 percent on both a year-over-year and month-by-month measurement

The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage applications in rose by 3.9 percent on both a year-over-year and month-by-month measurement, according to the latest data from First American Financial Corp.’s Loan Application Defect Index.
 
Within the application categories, the Defect Index for refinance transactions increased 3.3 percent from February to March, but was 4.5 percent lower than a year ago. The Defect Index for purchase transactions increased 2.4 percent on a month-by-month basis and was up 3.6 percent compared to a year ago. Wyoming had the greatest year-over-year increase in defect frequency with a 42.4 percent spike, while Connecticut recorded the greatest year-over-year decrease in defect frequency with an 8.9 percent drop.
 
“This month, the Loan Application Defect Index continued to trend upward as the risk on refinance and purchase transactions both increased compared to a month ago,” said Mark Fleming, chief economist at First American. “After four consecutive months of increased defect risk, it’s fair to call this a trend. We are experiencing one of the strongest sellers’ markets in recent memory and the ‘speed-buying’ that is required for home buyers to make an offer and win a bid for homes they like may be contributing to the increase in defect, misrepresentation and fraud risk that we are observing.”

 
Published
Apr 28, 2017
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021
SRE Mortgage Alliance 'Restructuring & Reorganizing'

Owner of technology-based wholesale residential mortgage lender in El Segundo to determine organization's future.

Wholesale
Oct 15, 2021
Ginnie Mae Issued Record MBS Volume In FY2021

The record $939 billion issued included nearly $73 billion in September.

Industry News
Oct 14, 2021
UWM Completes Test Of Cryptocurrency Mortgage Payments

United Wholesale Mortgage evaluated and accepted the first-ever cryptocurrency mortgage payment in September and an additional five payments in October from borrowers.

Industry News
Oct 14, 2021
Arvielo Re-Appointed To HUD Advisory Committee

Nationwide mortgage lender New American Funding’s Co-Founder and President Patty Arvielo has been re-appointed to serve on the U.S. Department of Housing & Urban Development's Housing Counseling Federal Advisory Committee.

Industry News
Oct 13, 2021