Incidences of fraud and loan defects are increasing among refinances as production of the loans accelerates.

Government-insured production declined slightly during the third quarter, while new business for private mortgage insurers was up 3.8%. (Includes four data tables.)

The U.S. Mortgage Insurers said FHA’s Mutual Mortgage Insurance Fund is overdue for reforms, with the 2% capital ratio requirement not sufficient to meet the standards the GSEs and private insurers must satisfy.