Loan defects fall monthly, annually in Chicago and nation

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The First American Loan Application Defect Index measures the localized frequency of fraudulence, defects and misrepresentation in mortgage loan application information.

The index show in November the defect rate fell 1.3 percent compared with the previous month and dropped 8.2 percent compared with the November 2014 index. The Defect Index reflects mortgage loan defect rates by geography and loan type.

On a monthly basis, the index fell for the fourth consecutive time, showing a 23.5 percent dip from the highest month reported October of 2013.

Refinance transactions saw a dip of 2.9 percent monthly and 10. 7 percent annually. Defects on purchase transactions remained fairly unchanged on a monthly basis, but is 8.6 percent lower than the same month a year ago.

In the Chicago-Elgin-Naperville MSA, the defect index was reported at 81, which was a month-over-month drop of 1.22 percent. Annually, the index fell 6.9 percent. In the state of Illinois, the Index was reported at 78, falling 7.14 percent year-over-year.