Loan Defect Index Unchanged for January – NMP
Industry News

Loan Defect Index Unchanged for January

Feb 28, 2018
The risk of mortgage fraud in the second quarter was 12.4 percent higher from one year earlier, according to the latest data from the CoreLogic Mortgage Application Fraud Risk Index

The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage applications remained unchanged from December to January, according to First American Financial Corp.’s latest Loan Application Defect Index report. On a year-over-year basis, the Defect Index increased by 13.7 percent.
 
The Defect Index for purchase transactions in January was 1.1 percent above the level in December and was up 10.8 percent compared with a year ago. The Defect Index for refinance transactions remained unchanged compared with the previous month and was 16.9 percent higher than a year ago.
 
Mark Fleming, Chief Economist at First American, pointed out problems emanating from the Sunshine State’s housing market.
 
“As the risk of fraudulent purchase transactions rises, understanding where risk lies is important,” said Fleming. “Florida is one of the largest markets in the country with concentrations of condominiums in the large coastal markets. The combination of size and rising defect, fraud, and misrepresentation risk in condominiums, makes Florida an important market to watch.”
 
About the author
Phil Hall
Link copied
Published
Feb 28, 2018
Get the NMP Daily
People On The Move
Jonathan Warrick Takes Helm At dv01 As Founder Perry Rahbar Moves To Fitch Advisory Role

The structured-finance data provider’s first employee succeeds Rahbar following more than a decade with the company

Jonathan Warrick has been named head of dv01, succeeding founder Perry Rahbar in the top leadership role at the structured-finance data and analytics provider.Warrick, dv01’s first employee, most recently served as chief operating officer. Rahbar is transitioning to a strate...

Continue reading
Wholesale
UWM’s $2.05 Billion Capital Reset Doesn’t Erase Its Leverage

Fitch downgraded the wholesale giant after leverage reached 6.1x, saying the preferred investment changes UWM’s funding structure but does not immediately reduce its debt burden

United Wholesale Mortgage’s $2.05 billion capital reset may strengthen its liquidity and replace secured borrowings, but Fitch Ratings does not believe the transaction immediately reduces the wholesale lender’s debt burden.Fitch downgraded the long-term issuer default rating...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
The Fed Held. The Mortgage Market Got A Warning.

Three policymakers favored an immediate hike, while Warsh welcomed higher bond yields and offered no clear path toward mortgage-rate relief

Industry News
Jul 30, 2026
New Study Finds UWM's 'All-In' Triggered Industrywide Pricing Spillovers

Research shows wholesale competitors responded to the 2021 Rocket ban by lowering mortgage rates,

Industry News
Jul 15, 2026
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Industry News
Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Industry News
Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Industry News
Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Industry News
Jul 02, 2026