According to data from First American’s Loan Application Defect Index, there’s a growing division between the North and South. “Cotton states in the South are showing the highest levels of risk, compared to the northern rust-belt, where application and defect risk is currently the lowest,” said Mark Fleming, First American’s chief economist. Fleming added that defect risk is concentrating in states such as Arkansas, Louisiana, Texas and South Carolina. Meanwhile, states such as New York, Pennsylvania and Ohio have the least loan application defect and misrepresentation risk.
The states with the highest year-over-year increase in defect frequency are:
The states with the highest year-over-year decrease in defect frequency are:
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