Loan defect and misrepresentation declines nationwide

Defect loan applications are steadily dropping across the country, First American says
  • The First American Loan Application Defect Index showed defects, fraudulence and misrepresentation on loan applications across the U.S. declined 16.7 percent year-over-year.
  • Affordable housing and income growth in the South has attracted more buyers, which has elevated the risk factors due to increased demand.
  • San Francisco's Defect Index decreased 18.99 percent year-over-year, to 64. There has been steady decline over the summer, with a 1.54 percent decrease month-over-month in July.

Low interest rates and better loan processing have produced the lowest national level of loan defect and misrepresentation in the recent past, according to First American Financial Corp.