Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

Why Has Defect Risk Reached A Multi-Year Low Point?

By Mark Fleming on October 31, 2019

Declining for the sixth consecutive month, the Loan Application Defect Index for purchase transactions fell 2.6 percent in September compared with August. The Defect Index for refinance transactions also fell, declining 4.5 percent compared with the previous month. The overall Defect Index, which includes both purchase and refinance...

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Topics: Fraud Loan Application Defect Index

How 2019 Became The Year Of Declining Fraud Risk

By Mark Fleming on September 26, 2019

Declining for the fifth consecutive month, the Loan Application Defect Index for purchase transactions continued its downward trend, falling 3.8 percent in August compared with July. The Defect Index for refinance transactions also fell, declining 4.3 percent compared with the previous month. The overall Defect Index, which includes both...

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Topics: Fraud Loan Application Defect Index

What Does The Refinance Boom Mean For Fraud Risk?

By Mark Fleming on August 29, 2019

The Loan Application Defect Index for purchase transactions continued its downward trend, declining 3.6 percent in July compared with June, the fourth consecutive month defect risk in purchase transactions has fallen. The Defect Index for refinance transactions also fell 4.2 percent compared with the previous month. The overall Defect Index,...

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Topics: Fraud Loan Application Defect Index

Why Florida Cities Suddenly Lead The Charge In Declining Fraud Risk

By Mark Fleming on July 31, 2019

This month, the Loan Application Defect Index for purchase transactions continued its downward trend, declining 7.8 percent in June compared with the month before, the third consecutive month defect risk in purchase transactions has fallen. The Defect Index for refinance transactions also fell 6.5 percent compared with the previous month. The...

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Topics: Fraud Loan Application Defect Index

What’s Behind The Two-Month Decline In Fraud Risk?

By Mark Fleming on June 28, 2019

Last month, we predicted that if mortgage rates continued to fall, it may help ease the pressure on fraud risk. Indeed, the 30-year, fixed-rate mortgage fell to its lowest level since January 2018, and fraud risk has fallen alongside it. The Loan Application Defect Index for purchase transactions declined 6.3 percent in May compared with April,...

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Topics: Fraud Loan Application Defect Index

How Lower Mortgage Rates Helped Reduce Defect Risk For The First Time In Eight Months

By Mark Fleming on May 31, 2019

The frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications declined 4.2 percent compared to last month. Notably, this marks the first month-over-month decline since July 2018, thanks to lower mortgage rates. Decreasing mortgage rates contributed to an increase in inventory, reducing...

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Topics: Fraud Loan Application Defect Index