As mortgage rates continue to descend, loan application defects and fraud risk are following suit. According to First American’s June 2016 Loan Application Defect Index, misrepresentations in loan applications dipped 1.4 percent in June compared with the previous month. Annually, these fraudulent trends decreased 12.2 percent.
- In the U.S., mortgage fraud dipped 1.4 percent over May and 12.2 percent over the same month in the previous year in June.
- The top five markets for the Defect Index were located in South Carolina and Texas, with Houston receiving a Defect Index of 89.
- Michigan, Florida and Deleware ranked as the top three states with the biggest decrease in mortgage fraud risk.