Market Update – Wire Fraud & Settlement Risk on the Rise
As short end rates were cut by the federal reserve signaling a cheapening for prime based home equity and consumer credit products, mortgage rates remained at historic lows as cited by the MBA and Wall Street Journal. Several lenders have reported record monthly origination volumes such as Quicken, PRMG, Guaranteed Rate, Plaza Home Mortgage, CMG, Guild among many others.  
Ike Suri, Chairman & CEO of FundingShield shared, “During this period of increased production and volume FundingShield has continued to identify, measure, mitigate and protect its clients during these market conditions. Fundingshield noticed an uptick of 32% of issues on the loans it reviewed for the period ending June 30 , 2019 with items stemming from licensing issues, to lack of enforceable documentation to wire fraud and negligence.”
FundingShield’s latest market analytics for the period June 30, 2019:
26.4% of loans were non-compliant
Were unique loans that had at least one issue causing them to not be compliant with regulations amounting to approximately 26.4% of all loans. This is a 32% increase from the last reported rate of 20% during the same period last year. 
1 of 3 loans had multiple issues
Upon further analysis the number of non-compliant loans that had multiple defects was almost 1/3 rd of the 26.4% of loans. 
Increased cost of single loss + related recovery
Lenders costs associated to wire fraud related losses, losses due to defalcations and the costs to inspect and update workflows / systems, recover funds and reinstate insurance policies can reach up to $850k
Recent breaches due to fraud schemes & hacks – increased fines and reputation damage:
Fines from regulatory bodies, eroded shareholder value and customer trust. Equifax recently paid $700mm and Facebook $5Bn – Financial Institutions are highly exposed to reputation risk.
Due to the market challenges cited above FundingShield is pleased to announce a monthly record number of transactions protected on the back volume & client growth as well as the efficacy of our fintech tools. FundingShield clients that include lenders, investors and regulatory bodies utilize FundingShield’s tools for the betterment of the mortgage industry that is going through the digital transformation.
Recent Press Releases:

FundingShield partners with FormFree® to Deliver Enhanced Wire Fraud Protection to FormFree’s Network of More than 1,000 Mortgage Lenders
About Funding Shield
 FundingShield is a leading provider of risk management, fraud prevention and regulatory compliance technology solutions protecting the mortgage, real estate, title and legal industries. FundingShield’s award winning FinTech solutions deliver the highest level of control and risk mitigation against wire fraud, settlement risk, third-party vendors and cyber fraud while improving the bottom line. The firm’s proprietary database of title and settlement parties is the largest in the industry with live, verified and vetted data. FundingShield’s services deliver actionable intelligence at the transaction level with coverage up to $5 million per transaction leveraging the firm’s cognitive AI and machine learning tools. These user-centric solutions are plug’n play, scalable, pay as you go, secure, cloud-based and integrate easily through its APIs. FundingShield is a HousingWire Tech100™ company for the year 2019.
For more information on FundingShield or to speak with our sales or product team please email [email protected] or call 949 706 7888  

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 Fundingshield, LLC
Newport Beach, CA