“These findings reflect a lack of suitable checks by final agents and lenders to identify and resolve problems,” the report said.
Escalating fraud risks
Fundinghield marked growing concern about closing the validation of closing the protection protection (CPL).
In Q1 2025, 10.8% of transactions had CPL-related data errors with borrower names, ownership addresses, established parties and other important elements. CPL discrepancies reached a record high and hit 47.7% of all transactions.
Wire -related problems remained increased for the sixth consecutive quarter and appeared in 8.4% of the revised transactions. According to the report, license -validation problems also remained as a result of expired, suspended or incorrectly registered entities, involving nearly 1.7% of transactions with such license issues.
“The persistently high levels of CPL validation errors, wire problems and data mism matches emphasize the urgent need for real-time source data verification and trusted data sets in critical mortgage work flows,” Fundinghield said.
Fannie Mae increases the investigation
The report also emphasized a growing focus on risk management of the companies sponsored by the government (GSE) Fannie Mae.
In the first quarter of 2025, Fundingshield said that the increased data requests received from customers from lenders who have undergone the audits of the risk assessment of mortgage.
As part of these audits, Fannie Mae Geldenschieters required to confirm their procedures for performing transaction -specific assessments of final agents, title insurers and relevant documentation at the time of closure.
A representative of Fannie Mae emphasized: “It is crucial that these checks are carried out for each transaction to effectively reduce risks.”
Lenders were also asked to provide proof of frameworks that provided an investigation into assessed title insurance companies and to demonstrate the use of licensed parties in accordance with the Escrow and Insurance Laws.
“These requirements signal rising market risks, partly driven by growing concern about cyber security and data integrity,” the report said.
Implications for the mortgage industry
Fundinghield suggested that the increased control indicates a “higher expectation of risk” and a “need to further confirm the story of title insurance companies for loans that are sold to the GSE.”
The company characterized its assessment at transaction level and licented verification, coverage validation and banking data controls-as a market stand to manage such risks.
“Decisive data from trusted sources will remain a cornerstone of the mortgage and real estate financing sector,” concluded the report. “AI solutions can significantly improve automation, cooperation and process improvement, but these require verified, real-time data to be effective and responsible.”
Addition statistics in the report include:
- CPL -Validation Problems that reach record levels, which meet 47.7% of transactions in Q1 2025, an increase compared to Q4 2024.
- Wire -related errors remained high at 8.41% of the transactions.
- Insurance problems remained relatively low with 0.65%.
- License problems were found in 1.7% of the transactions.
