Posts Tagged ‘first american’

Loan Application Defect Index Falling

January 5th, 2016 Comments off

mortgage    andyenstallblog  creditThe overall amount of fraud risk in home loan documents has been falling, according to what scotsmanguide tells First American, having dropped by 8.2 percent year-over-year Nov., and down 1.3 percent from Oct. to Nov., 2015.

First American’s Loan Application Defect Index has dropped 23.5 percent since it reached its zenith in Oct. 2013. “We had a spike at the beginning of last year,” First American Chief Economist Mark Fleming said on Monday. “That faded in the second half of the year.

Defects come from applicants lying about some information—SS number, income, vacation home called primary. Loans can have several irregularities, and there are many that can crop up, as MHProNews has learned.

Fraud risk carried by investors and lenders also has extensive possibilities: borrowers get a better rate if they occupy the home; or they claim their manufactured home is a single-detached home, which has a lower mortgage.

In any case, says Fleming, he does not know if the defects are innocent mistakes or fraud, but more defects coincide with more fraud risk. “We know that risk is rising as that average [defects are] rising, and risk is falling as that average is falling,” Fleming said.

He noted Florida has a much higher preponderance of defects, but the rate has fallen seven percent in the last three months. ##

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matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Economic and Housing Activity Remains at 88 Percent

June 6th, 2014 Comments off

Representing a net gain of nine metropolitan areas year-over-year, 56 returned to or exceeded their last normal levels of economic and housing activity out of 350 metros, according to the National Association of Home Builders (NAHB)/First American Leading Markets Index (LMI). Based on current permit, price and employment data, MHProNews has learned, the average LMI is running at 88 percent of normal economic and housing activity, with no change from May. Thirty percent of the metro markets saw an improvement since last month, and 83 percent saw their scores rise during the past year. “Of the three components in the LMI, the one lagging is single-family housing permits, which is only 43 percent of the way back to normal while home prices are 26 percent above their last normal level and employment is at 95 percent of its previous norm,” said NAHB Chief Economist David Crowe. “In the 22 metros where permits are at or above normal, the overall index indicates that these markets have fully recovered.” ##

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NAHB: Housing Numbers Showing Modest Rise

April 8th, 2014 Comments off

Statistics from the National Association of Home Builders (NAHB) indicate modest improvement this month over March, and anticipates a traditional, solid, spring home-buying season. Based on employment, permits and price data, the NAHB/First American Leading Markets Index (LMI) reports 28 percent of metro areas experienced a rise in their score this month, and 83 percent saw a rise within the last year. Baton Rouge, LA tops the list of large metro LMI areas, has learned, followed by Honolulu, Oklahoma City, Austin and Houston, Texas, San Jose, CA. and Harrisburg, PA. Smaller metro areas with strong LMIs are centered around energy exploration sites such as Odessa and Midland, Texas, and western North Dakota. ##

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