TMCnet News
Strong Sellers' Market Sends Defect, Fraud and Misrepresentation Risk Higher for Fourth Straight Month, According to First American Loan Application Defect IndexFirst American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released the First American Loan Application Defect Index for March 2017, which estimates the frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications. The Defect Index reflects estimated mortgage loan defect rates over time, by geography and by loan type. It's 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, as well as state and market comparisons of mortgage loan defect levels. March 2017 Loan Application Defect Index
Chief Economist Analysis: Defect Risk Shifts South for Spring "This month, the Loan Application Defect Index continued to trend upward as the risk on refinance and purchase transactions both increased compared to a month ago," said Mark Fleming, chief economist at First American. "After four consecutive months of increased defect risk, it's fair to call this a trend. "We are experiencing one of the strongest sellers' markets in recent memory and the 'speed-buying' that is required for home buyers to make an offer and win a bid for homes they like may be contributin to the increase in defect, misrepresentation and fraud risk that we are observing," said Fleming. "Defect, fraud and misrepresentation risk is increasingly becoming a regional phenomenon. The risk is concentrating in attractive local markets where housing demand is the strongest, primarily in the South," said Fleming. "The South may not be so charming anymore if you manage loan fraud and misrepresentation risk." Additional Quotes from Chief Economist Mark Fleming
March 2017 State Highlights
March 2017 Local Market Highlights
Next Release The next release of the First American Loan Application Defect Index will be posted the week of May 22, 2017. Methodology The methodology statement for the First American Loan Application Defect Index is available at http://www.firstam.com/economics/defect-index. Disclaimer Opinions, estimates, forecasts and other views contained in this page are those of First American's Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American's business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2017 by First American. Information from this page may be used with proper attribution. About First American First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With total revenue of $5.6 billion in 2016, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2016 and again in 2017, First American was named to the Fortune 100 Best Companies to Work For® list. More information about the company can be found at www.firstam.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170428005051/en/ |