ACUMA Community,
FundingShield released its Closing and Fraud Prevention Report providing a data-driven look at the transaction-level defects, fraud indicators, and closing risks continuing to impact mortgage originations, purchases, and transfers across the industry. FundingShield’s Q1 2026 report states that 43.72% of transactions reviewed within a $106.7B+ portfolio were flagged for issues posing significant wire and title fraud risk, with an average of 2.2 issues per problematic loan.
FundingShield is an embedded cybersecurity infrastructure layer for the mortgage industry, helping clients identify and prevent fraud through real-time, source-data-driven technology that strengthens risk management and regulatory compliance while lowering cost. Our solutions provide real-time remediation, improve asset value, support stronger ratings outcomes, and deliver audit-ready certifications for GSEs and other stakeholders. As outlined in our Fraud Report, FundingShield helps the mortgage industry validate critical transaction data and reduce risk, cost, and manual friction across the full loan lifecycle, from origination and underwriting through closing and funding, and into loan transfer, sale, securitization, and ongoing monitoring.
In this Q1 2026 report, FundingShield highlights closing issues and risk trends related to wire data, licensing data, title insurer backing, and CPL loan detail discrepancies. The report found CPL-related discrepancies in 43.49% of transactions, wire instruction defects in 6.92%, and licensing irregularities in 2.37%, with quarter-over-quarter improvements also reported in CPL issues, CPL validation issues, and insurance issues as remediation and workflow refinement deepened. FundingShield further reported a 14% improvement in remediation efficiency and noted client ROI of up to 400% across 2025, helping demonstrate how real-time verification and remediation can strengthen mortgage closing integrity for credit unions and the broader lending ecosystem.
Key Risk Metrics: Quarter-over-Quarter Comparison (Q1 2026 vs. Q4 2025)
- CPL Issues: -10.86%
- CPL Validation Issues: -14.08%
- Insurance Issues: -3.18%
Thank you to the ACUMA Community for the opportunity to share these insights. FundingShield looks forward to continuing to provide timely perspectives on key closing, data integrity, and fraud prevention trends affecting the mortgage industry. Please feel free to reach out if we can be helpful or if you would like to learn more about FundingShield’s platform and capabilities.
Best Regards,
Team FundingShield