Tag Archives: Application Defects

“With 1.3 million loans still in active forbearance along with the renewed focus on servicing from the CFPB and other regulators, servicers and lenders alike must be diligent in their compliance practices,” said Nick Volpe, ACES EVP.

Mortgage loan application defects are becoming less prevalent in the housing market as the Ability-to-Pay rules are reducing fraud risk related to income, while misrepresented income is more likely to be caught on a loan application.

First American Financial Corporation’s Loan Application Defect Index for July 2015 found that the mortgage loan defect rate rose 4.9 percent in July compared to June.