Posts Tagged ‘legal’

Mortgage Fraud Risk Slows; Rises in Hurricane-Impacted States

Posted on December 14, 2017 by Laura Lam

While the nationwide run-up in mortgage loan application defects appears to have slowed, instances of fraud remain on the rise in Texas and Florida.  The First American Loan Application Defect index remained unchanged for the second straight month in October, but is up 22.1% from October 2016.  Defect risk spiked between November 2016, when it hit an all-time low, and June. Loan application defects are indicators for mortgage fraud. “The surge in defect, fraud and misrepresentation risk that started a year ago has finally lost momentum,” said First American’s Chief Economist Mark Fleming.  “The Loan Application Defect Index has either remained…

CMBS Delinquency Rates, Loan Prices Trend Lower

Posted on November 06, 2017 by Laura Lam

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its October 2017 U.S. CMBS Delinquency Report last week. The Trepp CMBS Delinquency Rate fell again in September, as more previously delinquent loans continue to be resolved. The delinquency rate for U.S. commercial real estate loans in CMBS is now 5.21%, a drop of 19 basis points from September. For the first time in 2017, the year-to-date level is lower than the final 2016 delinquency reading. “For the past few months, we’ve been saying that further declines in the…

Delinquency Rate Continues at 10-year Low

Posted on October 26, 2017 by Laura Lam

CoreLogic released its latest Loan Performance Insights report on national foreclosure and delinquency activity earlier this month.  According to the report, the share of mortgages that transitioned from current to 30-days past due was 0.9% in July 2017, down from 1.1% in July 2016. CoreLogic compares this to January of 2007 when “just before the start of the financial crisis, the current-to-30-day transition rate was 1.2% and peaked in November 2008 at 2%.” In addition, it is noted that 4.6% of mortgages were in some stage of delinquency in July 2017 – a 0.9 percentage point year-over-year decline in the…

Data Breaches Cost Firms $1.3 Million in 2017

Posted on October 19, 2017 by Laura Lam

Cyber attacks cost large North American businesses an average of $1.3 million in 2017, according to a new report from security vendor Kaspersky Lab and market research firm B2B International.  The companies surveyed more than 5,000 businesses across 30 countries to gather data on cyber security issues. The cost of data breaches and other attacks was up from $1.2 million in 2016, and totaled $117,000 per incident for small and medium businesses. Companies are starting to view IT security as a strategic investment, the report said. The share of budgets spent on security is growing, reaching 18% compared with 16%…

Credit Card Delinquencies on the Rise

Posted on October 18, 2017 by Laura Lam

Credit card delinquency rose for the third straight month in September, data from JPMorgan Chase & Co. and card issuer Discover Financial Services suggested.  The data add to signs that U.S. consumers are struggling amid rising household debt, after bank results last week pointed to an increase in provisions for future losses. September delinquencies for JPMorgan rose 1.22%, while those at Discover Financial were up 1.64% from August. Those at Bank of America also rose 1.56% — the second rise in three months.  Credit quality at several banks appears to be deteriorating as lenders target consumers with worse credit ratings to…

Leasing Delinquencies Remain at Historic Lows

Posted on October 11, 2017 by Laura Lam

Recent statistics from the Federal Reserve validate what leasing professionals have understood about their industry for years. The data reach back to the first quarter of 1985 and underscore the fact that, when it comes to delinquencies and charge-offs, equipment leasing remains one of the best performing sectors under the broader umbrella of commercial finance. According to Bob Rinaldi, CEO of Commercial Industrial Finance, Inc., the most recent data on charge-offs and delinquencies offer no surprises. Rinaldi stated, “There’s nothing in this data that should alarm anyone in the industry…the data points are exactly where they should be. Everything here…

CMBS Delinquencies Continue to Decline

Posted on October 05, 2017 by Laura Lam

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, recently released its September 2017 US CMBS Delinquency Report.  For the third straight month, the Trepp CMBS Delinquency Rate was pushed lower. The delinquency rate for US commercial real estate loans in CMBS is now 5.40%, a decrease of four basis points from August. The September 2017 rate is now 62 basis points higher than the year-ago level. “After more than two years, the ‘wave of maturities’ has been reduced to a mere ripple,” according to Manus Clancy, Senior Managing…

A Tale of Two Hurricanes: Equity Disparity in Harvey/Irma Housing Markets

Posted on October 03, 2017 by Laura Lam

The majority of borrowers impacted by Hurricane Harvey have a significant amount of equity, while about 350,000 in Hurricane Irma disaster areas have either limited or negative equity, according to Black Knight Financial Services.  Less than 0.5% of borrowers impacted by Hurricane Harvey were in negative equity positions before the storm hit, and less than 4% have below 10% equity.  In contrast, of borrowers in counties impacted by Hurricane Irma, 5.3% still owe more than the value of their home, and an additional 5.6% have less than 10% equity.  Nationwide, 1.4 million borrowers, or 2.8% of homeowners with mortgages, had negative equity in…

What’s Next for Consumer Data Security?

Posted on September 29, 2017 by Laura Lam

For Equifax, the fallout from its massive data breach is far from over.  The company is facing numerous inquiries from government agencies and even lawsuits.  The breach exposed serious flaws in the financial system’s consumer data security framework.  So how can the financial services industry protect against fraud in the future?  How can they make things safer? According to a new report from ratings agency DBRS, the answer to making things safer is to further embrace technology.  Specifically, DBRS states that it believes the financial services industry needs to move towards biometric security, which would provide additional layers of protection that a Social Security…

Mortgage Fraud Risk on the Rise

Posted on September 28, 2017 by Laura Lam

An estimated 13,404 mortgage applications, representing 0.82% of all applications, filed during the second quarter contained indications of fraud, according to the Mortgage Application Fraud Risk Index released by CoreLogic.  The second-quarter figure is a 16.9% increase from the 12,718 mortgage applications, comprising 0.70% of total applications, that contained indications of fraud recorded in the second quarter of 2016. By state, mortgage application fraud risk was highest in New York, pushing it to overtake Florida as the state with the highest risk. After holding the top spot for the last several years, Florida is now in third after posting a…