NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Jul 21, 2025--
During Q2 2025, nearly 46.63% of transactions within an approximately $81 billion portfolio—spanning residential, commercial, and business-purpose loans—were flagged for issues that posed a significant risk of wire and title fraud. On average, each problematic loan exhibited 2.2 issues, marking a new record and highlighting a troubling trend: existing controls by closing agents and lenders are proving insufficient to consistently detect and resolve these vulnerabilities before closing.
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The mortgage and settlement services industry continued to face heightened scrutiny around fraud prevention, data integrity, and closing process controls. FundingShield proactively identifies and blocks risks before funds are ever transferred, thus how we are able to report these metrics. This approach is key to preventing wire fraud by ensuring that only verified, authorized parties are involved in the disbursement process and allows our solutions to be utilized by Banks, Credit Unions, Law firms, Disbursement Agents, Warehouse Lenders, Non-QM lenders, Private credit funds, PE Firms and direct lenders among others involved in US real estate and finance.
Q2 2025 saw consistent elevated levels for CPL validation related errors (9.4% of transactions) for critical data points such as borrower information, vesting / vested parties, non-borrowing parties on title, property addresses, borrower information and more. This is another example of a lack of accuracy between lender and title systems alongside the CPL issues that are at 44.43% of transactions.
There were wire related errors at 8.57% of transactions in Q2, the 7 th straight quarter with over 8% for this category. License issues remained at elevated levels of 5.1% from Q1 2025 to Q2 2025 due to entities having lapsed, terminated, or suspended licenses and inconsistent data when verified with registrars, insurance regulators and licensing bodies. These persistently high levels, combined with the CPL Validation and key data element mismatch, highlight the need for source data verification in workflows and for trusted data sets being used as part of critical processes.
Quarter-over-Quarter Comparison (Q2 2025 vs. Q1 2025)
Key Observations
Recent initiatives by federal regulators and housing finance authorities have reinforced the importance of proactive fraud detection and data integrity:
These trends underscore the need for source data verification and the use of trusted, independently validated datasets in closing workflows. Without these controls, lenders face increased exposure to fraud, compliance violations, and post-closing recovery challenges. CPL validation is an example of a way that supports these mandates by providing a verifiable control that confirms the legitimacy of the closing process and the parties involved.
Conclusion
As fraud risks and regulatory expectations grow, the mortgage industry must strengthen controls around data accuracy, third-party oversight, and transaction integrity. These needs are reflected in FHFA guidance, GSE selling guides, and federal compliance standards.
FundingShield supports these efforts by providing real-time validation of closing agents, licensing, insurance, and transaction data—helping institutions meet regulatory requirements, reduce fraud exposure, and improve loan quality through trusted, independently verified data.
Quarterly Risk Rates Provided by FundingShield
ADEN, Yemen (AP) — Saudi warplanes have reportedly struck on Friday forces in southern Yemen backed by the United Arab Emirates, a separatist leader says.
This comes as a Saudi-led operation attempts to take over camps of the Southern Transitional Council, or STC, in the governorate of Haramout that borders Saudi Arabia.
Tensions between Saudi Arabia and the UAE rose after the STC moved last month into Yemen’s governorates of Hadramout and Mahra and seized an oil-rich region. The move pushed out forces affiliated with the Saudi-backed National Shield Forces, a group aligned with the coalition in fighting the Iran-backed Houthis in Yemen.
Meanwhile, the Saudi ambassador to Yemen accused the head of the STC of blocking a Saudi mediation delegation from landing in the southern city of Aden.
The STC deputy and former Hamdrmout governor, Ahmed bin Breik, said in a statement that the Saudi-backed National Shield Forces advanced toward the camps, but the separatists refused to withdraw, apparently leading to the airstrikes.
Mohamed al-Nakib, spokesperson for the STC-backed Southern Shield Forces, also known as Dera Al-Janoub, said Saudi airstrikes caused fatalities, without providing details. The Associated Press couldn’t independently verify that claim.
Al-Nakib also accused Saudi Arabia in a video on X of using “Muslim Brotherhood and al-Qaeda militias” in a "large-scale attack " early Friday that he claimed sepratists were able to repel.
He likened the latest developments to Yemen’s 1994 civil war, “except that this time it is under the cover of Saudi aviation operations.”
Salem al-Khanbashi, the governor of Hadramout who was chosen Friday by Yemen's internationally recognized government to command the Saudi-led forces in the governorate, refuted STC claims, calling them “ridiculous” and showing intentions of escalation instead of a peaceful handover, according Okaz newspaper, which is aligned with the Saudi government.
Earlier on Friday, al-khanbashi called the current operation of retrieving seized areas “peaceful.”
“This operation is not a declaration of war and does not seek escalation,” al-Khanbashi said in a speech aired on state media. “This is a responsible pre-emptive measure to remove weapons and prevent chaos and the camps from being used to undermine the security in Hadramout,” he added.
The Saudi-led coalition in Yemen demands the withdrawal of STC forces from the two governorates as part of de-escalation efforts. The STC has so far refused to hand over its weapons and camps.
The coalition's spokesperson Brig. Gen. Turki al-Maliki said Friday on X that Saudi-backed naval forces were deployed across the Arabian Sea to carry out inspections and combat smuggling.
In his post on X, the Saudi ambassador to Yemen, Mohammed al-Jaber, said the kingdom had tried “all efforts with STC” for weeks "to stop the escalation" and to urge the separatists to leave Hadramout and Mahra, only to be faced with “continued intransigence and rejection from Aidarous al-Zubaidi," the STC head.
Al-Jaber said the latest development was not permitting the Saudi delegation's jet to land in Aden, despite having agreed on its arrival with some STC leaders to find a solution that serves “everyone and the public interest.”
Yemen’s transport ministry, aligned with STC, said Saudi Arabia imposed on Thursday requirements mandating that flights to and from Aden International Airport undergo inspection in Jeddah. The ministry expressed “shock” and denounced the decision. There was no confirmation from Saudi authorities.
ِA spokesperson with the transport ministry told the AP late Thursday that all flights from and to the UAE were suspended until Saudi Arabia reverses these reported measures.
Yemen has been engulfed in a civil war for more than a decade, with the Houthis controlling much of the northern regions, while a Saudi-UAE-backed coalition supports the internationally recognized government in the south. However, the UAE also helps the southern separatists who call for South Yemen to secede once again from Yemen. Those aligned with the council have increasingly flown the flag of South Yemen, which was a separate country from 1967-1990.
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Associated Press writers Bassem Mroue in Beirut and Fatma Khaled in Cairo contributed to this report.
Southern Yemen soldiers of Southern Transitional Council (STC) at a check point, in Aden, Yemen, Wednesday, Dec. 31, 2025. (AP Photo)
