Mortgage loan misrepresentations drop significantly in Bridgeport-Stamford

The mortgage industry refers to a loan application in which the homeowner has misrepresented the facts as a “defect.” In September, Connecticut was the only state in the country to see a decline in a “defect” index tallied by First American Financial, a title insurance provider, and the Bridgeport-Stamford region saw an even better improvement, according to the Connecticut Post. In the coastal Fairfield County area, loan misrepresentations dropped 6.2 percent from the previous year. Mark Fleming, chief economist for First American Financial, said the potential for mortgage loan application fraud increases with when natural disasters occur. “Flooding is associated with elevated risk for misrepresentation of collateral,” he said. [Connecticut Post]