An increasing share of home purchase transactions is having a negative impact on the risk of defects, fraud and misrepresentation in home-lending applications.
An estimate of mortgage defect and fraud rates over time, the Loan Application Defect Index, was determined to be 2.5 percent more in May than a month earlier.
That left the risk index at the highest level it has been since 2015. Compared to the same month last year, the Defect Index worsened by 13.7 percent.
Source: Mortgage Daily