Fraud Report, AMC, Non-QM Products, eNote News; ROAD to Housing Thoughts; Oil and Rates

FundingShield’s Q2-2026 report reveals that over 45 percent of mortgage transactions contained material wire and title-related defects, signaling a heightened risk environment for the residential sector. In response to shifting market conditions, lenders like Spring EQ and LoanStream are introducing significant price improvements for non-QM and government loans to stimulate pipeline growth. Meanwhile, the industry is accelerating its digital transformation through new MISMO guidance on eNotes and the integration of governed AI tools to manage regulatory expectations and operational efficiency.

FundingShield’s latest Wire Fraud Analytics & Risk Report for the second quarter of 2026 highlights a troubling trend, with 45.32 percent of transactions across a $120.7 billion portfolio exhibiting material defects. Closing Protection Letter (CPL) issues were particularly prevalent, impacting 47.45 percent of transactions, while CPL validation and insurance-related issues also contributed to the risk profile. FundingShield CEO Ike Suri noted that while AI is driving innovation, it is also accelerating fraud, making independently verified, source-level data a necessity for lenders and investors seeking to maintain secondary market liquidity and manage rising insurance premiums.

To capture market share during the summer months, several lenders have launched aggressive pricing promotions targeting the non-QM and home equity segments. Spring EQ is offering a 100 basis point discount on eligible non-QM loans through July to attract self-employed borrowers and real estate investors, while LoanStream has introduced price improvements of up to 25 basis points on non-QM, DSCR, and government products including FHA, VA, and USDA loans. NFTYDoor has also lowered its HELOC rates, offering products for borrowers with FICO scores as low as 600 and combined loan-to-value ratios up to 90 percent, emphasizing a streamlined six-day average closing process.

The industry is also focusing on structural and technological upgrades, as evidenced by MISMO’s new white paper, “From Paper to Performance: How eNotes and eClosing Streamline Liquidity,” which provides guidance for originators and warehouse lenders. Companies like JazzX AI and Stratyfy are addressing the transparency challenges of artificial intelligence by developing governed AI tools that provide traceable reasoning for risk assessment and compliance decisions. Additionally, the upcoming transition to UAD 3.6 is pushing appraisal management companies to adopt machine learning and optical character recognition to modernize the valuation process, while platforms like Truework are automating income and employment verification to reduce costs for top-tier lenders.