Biography & Net Worth: Critical defect rate increases 13% Q2 2021, according to ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo., December 14, 2021 (SEND2PRESS NEWSWIRE) — ACES Quality Management® (ACES), a leading provider of enterprise quality management and control software for the financial services industry, has announced the release of its quarterly ACES Mortgage QC Trend Report. declare. Covers the second quarter (Q2) of 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management and Control® software.

Notable findings from the Q2 2021 report include:

* An increase of 13% in the overall critical defect rate from 2.27%, ending the multi-quarter trend of improvement;

* Continued dominance of the income/employment defect category, which reached the highest observed rate since the inception of this report in 2016;

* Improvements in manufacturing-related categories, along with some key underwriting categories, are likely to be driven by higher projected and stable volumes;

* A significant change in reviews of refinancing versus purchase transactions, further indicating that the transition from the refinancing market to the buying market is progressing well;

* Increased share and better performance for traditional loans; And

* A decline in early payment defaults (“EPD”), indicating that reviews have peaked and are now below pre-pandemic levels.

“Several factors contributed to the significant defect rate increase of 2.27% in Q2 of 2021, including the transition from the refinancing market to the buying market, falling margins from the previous quarter, uncertainty of evictions, and rising inflation,” said ACES Executive Vice President he said. President Nick Volpe. “As the market continues to transition to predominantly buy transactions, lenders should expect continued volatility over the next few quarters and, therefore, keep a close watch on defects in the foreseeable future.”

Findings for the Q2 2021 ACES Mortgage QC Industry Trends Report are based on post-closing quality control data derived from the ACES Quality Management and Control® Benchmarking System and incorporate data from previous quarters and/or calendar years, where applicable. All reviews and defect data assessed for the report were based on loan audits selected by lenders for full file reviews.

“While the significant defect rate growth was disappointing, there are several silver linings to our Q2 findings, including volume stabilization and declining unemployment numbers. These, along with other economic factors, provide some optimism for the coming quarters However, the potential impact of inflation on interest rates could dampen that outlook,” said Trevor Gauthier, CEO of ACES. “Given the uncertainty of the 2022 market and increasing regulatory pressures, lenders should ensure that their existing QC and compliance programs are leveraging automation to maximize credit quality and minimize risk.”

Mortgage QC Industry Trends Reports are available for free download at https://www.acesquality.com/resources/reports.

About ACES Quality Management

ACES Quality Management, formerly known as ACES Risk Management (ARMCO), is a leading provider of enterprise quality management and control software for the financial services industry. The nation’s foremost lenders, service providers and financial institutions rely on ACES Quality Management and Control Software® to improve audit throughput and quality while controlling costs, including:

* 3 of the top 5 and over 50% of the top 50 independent mortgage lenders;

* 7 of the top 10 loan servicers;

* 11 of the top 30 banks; And

* 1 of the top 3 credit unions in the United States.

Unlike other quality control platforms, only ACES offers flexible auditing technology, which allows independent mortgage lenders and financial institutions to easily manage and customize ACES to meet their business needs without relying on IT or other external resources. gives the ability. Using a customer-centric approach, ACES clients receive responsive support and access to our experts to maximize their investment. For more information visit https://www.acesquality.com/ or call 1-800-858-1598.

News source: ACES Quality Management

Critical Defect Rate Increases 13% Q2 2021 According to ACES Quality Management Mortgage QC Industry Trends Report Source Link Critical Defect Rate Increases 13% Q2 2021 According to ACES Quality Management Mortgage QC Industry Trends Report