FundingShield, the Market Leader in Wire & Title Fraud Prevention, Released Its Q2 2024 Report Showing Nearly Half of Transactions Were at Risk
2024年7月22日 - 10:00PM
ビジネスワイヤ(英語)
FundingShield, the market leader in wire & title
fraud prevention, released its Q2 2024 report showing
nearly half (47%) of transactions were at risk. Disparate
systems and processes between the title and lending communities as
well as cyber-related risk from bad actors drove these high
figures. An increase in title-related claims has been noticed as
well as execution errors by closing agents, meaning a thorough
review process is needed by lenders at the transaction level.
Quarterly Data
During Q2 2024 47% percent of transactions on a $74bn portfolio
comprising residential, commercial and business purpose loans had
issues leading to a risk of wire & title fraud. On average,
problematic loans had 2.21 issues per loan, indicating the lack of
appropriate controls by closing agents and lenders to identify and
fix issues.
Q2 2024 saw near record-high risk levels for wire data and CPL
Validations. The validations cover critical areas like agent good
standing, data accuracy between lenders and title systems, and
agent registration/active status, and there has been a 45% growth
rate in CPL Validations Q2 ‘23 to Q2 ‘24.
Other data elements showed a slight decline to near flat levels;
however, we did see a large increase in wire issues quarter over
quarter in attorney closing states (unauthorized practice of law
“UPL states” ). The growth rate in errors across all states from Q2
2023 to Q2 2024 was 26% and UPL states saw a 90% increase in errors
since the same period last year.
CPL issues were found on 45.04% of transactions, CPL Validation
issues remained at 9.8% of transactions and wire risks on 8.8% of
transactions. These persistently high levels highlight the ability
for bad actors to successfully gain knowledge of mortgage and real
estate closings and then attempt to use spear phishing, Business
Email Compromise attacks or other means to divert funds going to
and out of escrow/settlement accounts.
Analytics Q2 2024 vs Q1 2024:
- ~1.2% decrease in the number of errors found among loans with
issues
- 1.1% increase in CPL-related issues to the new record level of
45.04% of transactions.
- 8.8% of transactions had wire-related issues staying at near
the all-time high rate that was reached during Q1 2024.
- CPL Validations, agent good standing, issuance limits and title
file order registration issues in title insurer systems remained
near the all-time high level of 9.8% for Q1 2024.
“With a heightened cyber-threat environment with more
cyberattacks resulting in more leaked private information, bad
actors have more data to leverage to exploit gaps in controls in
the mortgage and real estate market. Lenders have been busy
deploying FundingShield’s solutions to drive automation and cost
savings while protecting their firms when they engage with closing
agents,” shared Ike Suri, CEO.
Contact Sales@fundingshield.com for demos and free trials.
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