FundingShield: Issues Per Transaction at All-Time High in Q4

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FundingShield, Newport Beach, Calif., released its Q4 2025 fraud analytics report, finding that problematic loans exhibited an average of 3.2 issues per transaction–an all-time high.

Looking at a $100.5 billion-plus portfolio, 46.05% of transactions were flagged for issues posing significant wire and fraud risks. That’s down slightly from Q3’s 46.6%, but up from 45.5% in Q4 2024.

Moreover, there was a 10% increase in transactions that had at least one data inconsistency, highlighting gaps between lender, title and settlement systems, FundingShield noted.

Among notable risk metrics: CPL-related discrepancies were recorded in 48.78% of the transactions, largely related to borrower data, vesting information, titleholder details and property identifiers.

Wire instruction defects were present in 8.91% of the transactions.

Licensing irregularities jumped by 58% from the previous quarter, hitting a new record of 3.47% of the transactions.

Insurance issues rose by 2.74% from the previous quarter.

“To lenders, my call is clear: don’t wait for an audit finding or a breach to dictate change,” noted Ike Suri, CEO of Funding Shield. “Strengthen controls now by embedding real‑time validation of licensing, insurance, wiring and title data. Doing so not only reduces fraud risk–it streamlines loan sale reviews, securitization readiness and post‑closing workflows that drive cost and time pressures.”