FundingShield: Elevated Wire, Title Fraud Risk Persist in Q1

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FundingShield, Newport Beach, Calif., found that in Q1, 43.72% of transactions within a $106.7 billion portfolio were flagged for issues posing significant wire and title fraud risks.

The portfolio spans residential, CRE, non-QM and securitized collateral.

However, the Q1 number is down from Q4 2025 at 46.05% and Q1 2025 at 46.84%.

Each problematic loan had an average of 2.2 issues per transaction.

CPL-related issues were present in 43.49% of transactions, with defects concentrated in borrower data, vesting information, titleholder details and property identifiers. However, that’s down slightly from Q4 2025 when it stood at 48.78%.

CPL validation issues appeared in 8.89%, compared with 10.35% in Q4.

Wire instruction defects were visible in 6.92% of transactions, down from 8.91% in the previous quarter.

Licensing irregularities appeared in 2.37%, driven by credential mismatches, expired licenses and inconsistent insurance records. It’s another category that has improved since the previous quarter, however; it stood at 3.47% in Q4.

And, insurance issues were present in 1.54%, near flat from Q4’s 1.59%.