Mortgage Application Defects Slow in All States except Texas and Florida
Texas and Florida have booming housing markets despite hurricanes that demolished many homes, pushing plenty of inventory down. Unfortunately, these states are still struggling with mortgage application defects, despite the slowing surge in the rest of the nation.
"The surge in defect, fraud and misrepresentation risk that started a year ago has finally lost momentum," said First American's Chief Economist Mark Fleming in a press release, according to National Mortgage News.
"The Loan Application Defect Index has either remained unchanged or declined in every month since July, and the index value is the same level as in the summer of 2015. Nationally, defect, fraud and misrepresentation risk has stabilized, but the local impact of recent natural disasters remains a concern."
Texas and Florida's defect index rose 1.16% and 3.62% respectively, according to the report. Texas and Florida are definitely the outliers but there are also a few cities across the nation that have seen increasing risk indexes.
"Miami had the third-highest risk index for metro areas, at 100, up 5.3% from September," according to the report.
"It trailed only Little Rock, Ark., at 108 and Boise City, Idaho at 104."
For more on the overall slow in the mortgage fraud and application defect index, click on the image above.
