Loan Application Defects Are Down From 2019

first_img About Author: Christina Hughes Babb Demand Propels Home Prices Upward 2 days ago  Print This Post 2020-12-01 Christina Hughes Babb Loan Application Defects Are Down From 2019 Sign up for DS News Daily in Daily Dose, Featured, News Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago December 1, 2020 939 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Previous: GSEs Release Mortgage Portfolio Updates Next: The CFPB Adds Five to Its Executive Team Share Save The Loan Application Defect Index (LADI) remained steady in October compared with the prior month but remains 10% lower than October 2019; purchase-loan fraud risk increased 1.2% month-over-month, and less risky refinance fraud risk did not change, according to First American Mortgage Solutions’ Loan Application Defect Index, which examines various portions of loan applications for the month of October. The research is updated monthly during the last week of the month.The monthly index estimates the level of defects detected in the information submitted in mortgage loan applications processed by the First American FraudGuard system. The index is based on the frequency with which defect indicators are identified. The data—which delves into whether the information on a loan is correct, misrepresented, or even potentially fraudulent— is useful when assessing the amount of risk on a loan, according to First American’s economists.First American’s Deputy Chief Economist Odeta Kushi offers some insight into this month’s report:Compared with single-family properties, loan applications for multi-unit properties have historically been riskier, she noted. In October, fraud risk only increased for multi-unit and planned unit developments (PUDs) on a month-over-month basis, 1.2% and 1.6%, respectively … Fraud risk for single-family properties remained the same compared with one month ago. The stability in single-family fraud risk is contributing to the steadiness of overall fraud risk, especially as market preferences tilt towards single-family homes,” she said.Kushi added, “More important for fraud risk is the continued sellers’ market, which may pressure homebuyers to misrepresent information on their loan application to win the bid for a home. The winter months should cool the hot sellers’ market, which may relieve pressure on overall fraud risk.”First American’s report includes trends from a national perspective as well as changes by state, market, and category. It can be viewed in its entirety at firstam.com. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Loan Application Defects Are Down From 2019 The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more