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FundingShield Finds Wire, Title Fraud Big Risk in Q2
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(Image courtesy FundingShield)
FundingShield, Newport Beach, Calif., reported wire and title fraud concerns persist at high levels so far this year, finding 50.2% of loans on a $68 billion portfolio in the second quarter had at least one risk issue.
The firm noted that problematic loans had, on average, almost two issues per loan, pointing to a lack of appropriate controls by closing agents. The number of loans with issues is up 12.6% in the first half of this year compared with last year.
There was a 6.5% increase in Closing Protection Letter-related errors such as data mismatches that lead to additional work post-closing from the first half of 2023 compared with the same period in 2022, and a 4.7% increase in issues with proof of insurance.
Moreover, Q2 saw a record high for agent licensing and good-standing issues. FundingShield reported 15% more agents are failing to keep their licenses active with states and insurance commissioners compared with Q1. Also, 6.7% of agents sent leaders a CPL that wasn’t registered or had incorrect data, up 22% from last quarter.