Skip to main content

Loan Defect Index Remains Unchanged

Phil Hall
Sep 29, 2017
The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications remained at the same from July into August

The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications remained at the same from July into August, according to First American Financial Corp.’s latest Loan Application Defect Index report. On a year-over-year measurement, last month’s index was 20 percent higher than the August 2016 index.
 
The Defect Index for refinance transactions decreased 1.4 percent month-over-month in August, but was 18.6 percent higher than a year ago. The Defect Index for purchase transactions remained the same from July into August, but was up 15.2 percent compared to a year ago.
 
“Last month, we reported that for the first time in 2017 the Loan Application Defect Index didn’t rise, but we advised caution in interpreting the one-month trend,” said Mark Fleming, Chief Economist at First American. “In August, the overall risk of defects, fraud and misrepresentation again didn’t change. It’s a positive sign that loan application risk has remained stable for two consecutive months, but given the recent high-profile data breaches that exposed the personal credit information of many U.S. consumers, the risk of identity-based fraud and misrepresentation is certainly elevated.”

 
Published
Sep 29, 2017
FormFree Enters Deal To Offer Products to Lenders One Members

Mortgage Cooperative Hopes Automated Borrower Verification Tools Will Enhance Customer Experience

Industry News
Aug 03, 2021
AHP Servicing Names Charles Halko Jr. CFO

Brings 30-Years Of Experience to Chicago-Based Servicer

Industry News
Aug 03, 2021
Ready Capital Announces Deal To Acquire Red Stone

Real Estate Finance Company Expands In Multi-Family Affordable Housing Sector

Industry News
Aug 03, 2021
Anchor Loans Hires Andrew Jewett As SVP, Enterprise Sales

Formerly lead lending at Sundae Inc.

Industry News
Aug 02, 2021
Pretium Adds 3 Execs With Residential Credit Expertise

New Hires Will Serve As Managing Directors

Industry News
Aug 02, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021