FundingShield: Wire, Title Fraud Risks Tick Up in Q2

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FundingShield, Newport Beach, Calif., released its Q2 2026 Wire Fraud Analytics & Risk Report, finding that 45.32% of transactions within a $120.7 billion portfolio spanning residential, CRE, non-QM and securitized collateral were flagged for issues posing significant wire and title fraud risks.

That compares with 43.72% in Q1. But, it’s also an improvement from 46.84% in Q2.

Each problematic loan revealed an average of 2.3 issues per transaction.

The composition of that risk shifted in the quarter, FundingShield noted.

Closing protection letter-related issues were present in 47.45% of the portfolio, compared with 43.49% in Q1.

Wire issues fell from 6.92% in Q1 to 6.45% in the most recent quarter. License issues also fell, from 2.37% to 1.44%.

CPL validation issues also fell, narrowly, from 8.89% in Q1 to 8.56% in Q2.

Insurance issues were near flat, falling from 1.54% to 1.48%.

However, FundingShield reported seeing an increase in identity and payoff risk issues, driven by deepfake seller impersonation and mortgage payoff schemes.

“Q2 highlighted a turning point rather than a continuation of Q1’s pressures. A record share of Gen Z, first-time, FHA-heavy borrowers entered the market at the same moment FHA delinquencies climbed, mortgage payoff fraud losses grew and deep-fake-enabled seller impersonation moved from theoretical to active,” the report stated.