More Defects Found in Mortgage Applications

May 31, 2017

The frequency of defects, fraudulence and misrepresentation in mortgage applications during April increased 2.5 percent from March and spiked by eight percent from April 2016, according to the First American Loan Application Defect Index.

The Defect Index for purchase transactions in April was up 2.3 percent compared to March and rose by 7.2 percent compared to a year earlier. The Defect Index for refinance transactions increased by 4.8 percent month-over-month and was 3.1 percent higher year-over-year.

“The Loan Application Defect Index continued its strong upward increase for the fifth consecutive month,” said Mark Fleming, chief economist at First American. “The pace of defect risk growth is as strong as we have seen since the index began in 2011, adding to the concern over the five-month trend. While we have recently noted that part of the rise in overall risk is due to the market’s shift toward riskier purchase transactions, the fact that risk in refinance transactions is also on the rise underscores the need for caution.”

About the author

Phil Hall

Link copied

Published

May 31, 2017

Courts

Former Better.com Executive Ends Lawsuit Against The Company

After a series of legal setbacks, Sarah Pierce dismisses remaining claims of retaliation and defamation.

Sarah Pierce, a former executive at Better.com, has voluntarily dismissed with prejudice her remaining allegations against the digital nonbank lender, its CEO Vishal Garg, and the company's General Counsel, Nicholas Calamari. A court filing dated April 19, 2024 indicates ...

Analysis and Data

Northeast Sees Highest Price Gains, Lagging Inventory

Meanwhile, Texas and Florida see slower home price appreciation due to inventory gains, CoreLogic reports.

The Northeast led in annual home price growth across the U.S., according to CoreLogic’s latest Home Price Insights from March. Nationwide, home prices increased by 5.3% compared to March 2023, and grew by 1.2% from the previous month, February 2024. “Home prices increa...