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O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T ANALYTICS AROUND THE U.S. ANALYTICS STATE RISK INDEX MONTHLY CHANGE Florida 99 -2.0 Percent Michigan 98 -3.9 Percent Oklahoma 96 2.1 Percent Texas 94 0.0 Percent Hawaii 92 1.1 Percent Arkansas 87 0.0 Percent Arizona 86 -2.27 Percent Idaho 85 0.0 Percent Washington 85 -1.16 Percent Tennessee 82 -1.20 Percent Louisiana 82 -1.20 Percent South Carolina 82 -1.20 Percent California 81 0.00 Percent Georgia 81 -2.41 Percent Utah 80 -2.44 Percent Connecticut 80 -4.76 Percent Illinois 80 -1.23 Percent Wisconsin 79 -2.47 Percent Alabama 79 -2.47 Percent New York 78 -2.50 Percent New Mexico 78 -1.27 Percent Colorado 77 -1.28 Percent Oregon 77 -1.28 Percent Vermont 77 -2.53 Percent Maryland 77 1.32 Percent Montana 76 1.33 Percent Indiana 76 -1.30 Percent Nevada 76 0.00 Percent Ohio 75 -2.60 Percent North Carolina 75 -1.32 Percent District of Columbia 75 -1.32 Percent Minnesota 74 -1.33 Percent Mississippi 74 -1.33 Percent Kentucky 73 -2.67 Percent New Jersey 73 -1.35 Percent Alaska 73 0.00 Percent Virginia 72 -2.70 Percent Delaware 70 0.00 Percent Missouri 69 0.00 Percent Rhode Island 69 -4.17 Percent Massachusetts 68 -4.23 Percent Pennsylvania 67 -2.90 Percent Kansas 66 -4.35 Percent Nebraska 65 -1.52 Percent Wyoming 64 1.59 Percent New Hampshire 62 -4.62 Percent Iowa 62 -4.60 Percent North Dakota 61 3.40 Percent West Virginia 57 -6.60 Percent South Dakota 53 -3.60 Percent Maine 51 -1.90 Percent Mortgage Loan Defects on the Decline Nationwide M ortgage loan defects on applications are becom- ing less prevalent in the housing industry as fraud risk lowers and consumers take greater care when filling out paperwork. Loan defects found in mortgage application declined 1.2 percent from August to September, and is now 20.6 percent below the high point of risk October 2013, recent data from First American's Loan Application Defect Index showed. First American's Chief Economist Mark Fleming noted that "a trend is beginning to emerge nationally as defect risk has now declined for three months in a row, mitigating some of the increased risk that was observed in the early part of the year." "The defect risk gap remains pronounced by loan purpose. Since late 2013, defect risk has declined more rapidly in refinance transactions than in purchase transactions," Fleming explained. "As rates increase and a more purchase-based mortgage market emerges next year, defect risk will rise overall, as it is more common on purchase transactions." The risk index was highest in Florida (99), Michigan (98), and Oklahoma (96), while West Virginia (57), South Dakota (53), and Maine (51) had the lowest risk indexes. Source: First American Financial Corp. 58 | TH E M R EP O RT