Jul
26

Loan-Application Defects Trending Down

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Fleming: “The monthly and annual decline in defect incidence is indicative of declining fraud risk nationally, as well as less-intentional or unintentional misrepresentation on loan applications.”

SANTA ANA, CA—The number of defects in information submitted in mortgage-loan applications decreased 5.8% in June as compared with May and decreased 11% from a year ago, according to First American Financial Corp.’s loan-application defect index. The index is available as an interactive tool that can be tailored to showcase trends by category, including amortization type, lien position, loan purpose, property and transaction types and state- and market-level comparisons of levels of mortgage-loan defects.

Mark Fleming, chief economist for First American, tells GlobeSt.com, “The monthly and annual decline in defect incidence, as shown by First American’s loan-application defect index, is indicative of declining fraud risk nationally, as well as less-intentional or unintentional misrepresentation on loan applications. Improving loan-application quality reduces risk in mortgage finance institutions.”…

Loan-Application Defects Trending Down

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