As the share of refinance mortgage originations continues to subside, more risky financing for home purchases is driving up the level of mortgage fraud risk.
As of January, the Loan Application Defect Index — an estimate of the frequency of defects, fraud and misrepresentation on mortgage applications — was 73.
Compared with the final month of last year, the index moved higher by almost 6 percent. But a 4 percent year-over-year reduction in the index was recorded.
Source: Mortgage Daily