Welcome back to part two of our recap covering LoanLogics’ participation in the 2021 RMQA panel discussion*, “Approaches to Ensuring Loan Quality to Minimize Repurchase Risk”, the title of this post. When we left off in our last post, we discussed how defects and repurchases are on the rise, further snowballing from a shift to a purchase market, skills and…
I’ve enjoyed writing the “Hey Boomer” blog series on b-Logics this year, which looked back at the way loan quality control (QC) was once managed in the mortgage industry and how its evolved. For my last post of the series, this will be the fifth and final, I’m diving back into defects. Recent industry volume got me thinking about…
Look out, things are starting to slip. With the home mortgage market turning from refi’s to purchases, rates rising, and a housing shortage along comes an increase in loan defects, fraud, and misrepresentations. The good news, according to the most recent First American Financial Corp’s Loan Application Defect Index, is that the defect rate for both refinances and purchases remained…
They say that anyone who represents themselves in court has a fool for a client. I am not calling any lender a fool. But, there are situations that require an expert in order to achieve the desired result. Even with all of the recent changes in the GSE Representation and Warranty framework and HUD’s Indemnification Policy, lenders still have uncertainty…
Recently, I’ve been writing about the challenges lenders face resulting from a shortage of affordable housing. With consumers having less money available for a down payment, lenders are forced to stretch the credit and income limits to qualify potential home buyers for higher priced homes. Now, we start to see the flip side. Loan defects, fraud, and misrepresentations once again…
Like the robot warning Will Robinson of danger on the old TV series “Lost in Space”, First American Financial Corp. is warning the industry that loan application defects are on the rise. The FAFC Loan Application Defect Index indicates defects rose in April for the fifth straight month. Not a good indicator of loan quality. According to the index Incidents…
