Tag Archives: managing loan quality

Critical Defect Rate Highest Since 2018, Per ACES Quality Management Q2 2020 Mortgage QC Trends Report

DENVER, Colo. /ScoopCloud/ -- ACES Quality Management(TM) (ACES), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of its quarterly ACES Mortgage QC Trends Report covering the second quarter (Q2) of 2020. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control Software(TM).

Notable findings from the Q2 2020 report include:

* The overall critical defect rate of 1.88% is the highest quarterly rate since 2018.

* Defect increase was driven primarily by a 64% increase in the Income/Employment category.

* While defects were down in the overall majority of categories, three of the four key borrower qualification categories saw significant defect rate increases compared to Q1 2020.

* The share of conventional and refinance loans continues to skyrocket.

* Early Payment Defaults (EPD) increased 197% through Sept 2020 compared to last year.

"While evidence of COVID-19's impact on loan quality was present in the Q1 data, Q2 is where 'The COVID Effect' becomes truly apparent, resulting in the highest critical defect rate observed since Q4 2018," said ACES Executive Vice President Nick Volpe. "One of the biggest drivers of this increase was the rise in Income/Employment-related defects - a wholly unsurprising outcome given the challenges nearly all employers faced in transitioning to a remote working environment."

"In many respects, the mortgage industry and the world at large remain in a "wait-and-see" mode. As such, we expect higher than normal volatility in the critical defect rate for the remaining quarters of 2020 and into 2021, though loan volumes should remain high next year thanks to the ongoing low-interest-rate environment," Volpe added.

Findings for the Q2 2020 ACES Mortgage QC Industry Trends Report are based on post-closing quality control data from over 90,000 unique loans and are categorized using the Fannie Mae loan defect taxonomy. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"We are still seeing a tremendous increase overall in EPDs as compared to 2019, making it too early to predict when EPDs will peak. Any continued rise is likely to exacerbate long-term default and loss rates, signaling that lenders must remain vigilant of the risks this might pose to their organizations," said ACES CEO Trevor Gauthier. "By increasing visibility into loan quality and introducing functionality specifically designed to accommodate the COVID-related changes to compliance regulations, ACES arms lenders with powerful quality control technology needed to manage that risk as they approach the great unknowns of the year ahead."

ACES executives will analyze the findings from the Q2 2020 ACES Mortgage QC Industry Trends Report and offer insights into what lenders can expect in future quarters during a webinar titled, "Insights into Mortgage QC Trends - First Signs of the COVID Effect," as part of its on-going QC NOW Web Series. To sign up for January 14, 2021 webinar, click here.

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

About ACES Quality Management

ACES Quality Management, formerly known as ACES Risk Management (ARMCO), is the leading provider of enterprise quality management and control software for the financial services industry. The nation's most prominent lenders, servicers and financial institutions rely on ACES Quality Management & Control Software(TM) to improve audit throughput and quality while controlling costs, including:

* 3 of the top 5 and more than 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 USA.

Unlike other quality control platforms, only ACES delivers Flexible Audit Technology, which gives independent mortgage lenders and financial institutions the ability to easily manage and customize ACES to meet their business needs without having to rely on IT or other outside resources. Using a customer-centric approach, ACES clients get responsive support and access to our experts to maximize their investment. For more information, visit www.acesquality.com or call 1-800-858-1598.

ACES Quality Management (ACES), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of its quarterly ACES Mortgage QC Trends Report covering the second quarter (Q2) of 2020.

Related link: https://www.acesquality.com/

ACES Quality Management Makes Key Loan Audit Platform Upgrades to Elevate User Experience for Lending Institutions

DENVER, Colo. /ScoopCloud/ -- ACES Quality Management(TM) (ACES), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of several key features and enhancements to its ACES Quality Management & Control Software(TM). The updates are designed to improve reporting through the system and create a highly customizable, easy-to-use experience.

Commonly reported data is now readily available for reporting directly in the ACES user interface (UI) through a library of standard reports. With a simpler, yet flexible and intuitive user experience and more options to customize their ACES environments, users can quickly and easily create their own reports or modify default reports to drill down on specific data points, as well as apply filters, sort columns and set order preferences.

"With higher loan volumes comes a higher risk of compromises to loan quality, increasing the need to utilize technology that mitigates risk while boosting productivity and quality," ACES CEO Trevor Gauthier said. "The newest enhancements to ACES' user interface and reporting functionality are part of our ongoing strategic initiative to improve direct access to live data. Whether lenders need to quickly distribute reports or better understand their productivity, ACES improves their efficiency while providing better control over quality and costs."

In addition, ACES has updated the look and feel of its UI to align the aesthetic elements of the ACES Quality Management & Control Software with the company's recent rebrand while maintaining the same core functionality and data analysis capabilities familiar to ACES users. The new and improved layout features independently scrolling sections, drag-and-drop items, improved menu navigation and simplification of users' ability to brand their environments. Upgrades to the UI and reporting were driven by client research and feedback from ACES users.

"Soliciting user feedback is an invaluable step in our process of continuously adapting our system to fit lenders' ever-changing needs," Gauthier said. "We strive to continue delivering the most flexible technology on the market for improving audit efficiency, boosting team productivity and helping lenders make better-informed decisions across lines of business, and in service of that goal, ACES invested in a team whose sole purpose is to continuously modernize our technology and improve the user experience."

About ACES Quality Management

ACES Quality Management, formerly known as ACES Risk Management (ARMCO), is the leading provider of enterprise quality management and control software for the financial services industry.

The nation's most prominent lenders, servicers and financial institutions rely on ACES Audit Quality Management & Control Software(TM) to improve audit throughput and quality while controlling costs, including:

* 3 of the top 5 and more than 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 USA.

Unlike other quality control platforms, only ACES delivers Flexible Audit Technology, which gives independent mortgage lenders and financial institutions the ability to easily manage and customize ACES to meet their business needs without having to rely on IT or other outside resources. Using a customer-centric approach, ACES clients get 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.

ACES Quality Management (ACES), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of several key features and enhancements to its ACES Quality Management & Control Software. The updates are designed to improve reporting through the system and create a highly customizable, easy-to-use experience.

Related link: https://www.acesquality.com/

ARMCO Launches ACESXPRESS for Early Payment Defaults

DENVER, Colo. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise quality management and control software for the lending industry, announced the release of ACESXPRESS(TM) for Early Payment Defaults (EPDs) to bolster lenders' existing audit programs in light of the recent increases in required monthly EPD audit volume.

"With unemployment figures on the rise due to the COVID-19 pandemic, the industry is bracing itself for a sharp increase in the number of EPDs on recently originated loans. Furthermore, EPDs are one of the strongest indicators of possible mortgage fraud, the likelihood of which also increases as borrowers feel a greater sense of urgency to secure financing for their home purchase," ARMCO CEO Trevor Gauthier said. "ACESXPRESS for EPDs provides a turnkey platform for managing sudden volume spikes in EPD audits while maintaining compliance with audit requirements. Because the system can be implemented within a week, ACESXPRESS for EPDs also minimizes the burden typically placed on existing staff when onboarding a new system, thus enabling lenders to begin realizing its benefits sooner."

Originally launched in 2016, ACESXPRESS delivers the power of the ACES Audit Technology(TM) platform in an easy-to-implement format for small and mid-sized lenders. Recognizing the need for a similar platform designed specifically for EPD audits, ARMCO refined the functionality of ACESXPRESS to deliver needed EPD audit support with a streamlined implementation timeframe. ACESXPRESS for EPDs includes:

* Minimal setup requirements and the ability to configure within a week;
* Full product support from ARMCO;
* Pre-configured audits, including ACES IQ for conducting EPD reviews; and
* A library of standard report templates.

"Responsiveness is key to managing loan quality," said Gauthier. "As economic and market conditions change, ARMCO is committed to delivering technology that supports lenders' audit needs and helps mitigate lending risk."

About ARMCO

ACES Risk Management (ARMCO) is the leading provider of enterprise quality management and control software for the financial services industry. More than half of the top 25 mortgage lenders, a third of the top 150 lenders and servicers and two of the top five U.S. commercial banks rely on ACES Audit Technology(TM) to improve audit throughput and quality while controlling costs. Unlike other quality control platforms, only ACES delivers Flexible Audit Technology, which gives independent mortgage lenders and financial institutions the ability to easily manage and customize ACES to meet their business needs without having to rely on IT or other outside resources. Using a customer-centric approach, ARMCO clients get responsive support and access to our experts to maximize their investment.

For more information, visit www.armco.us or call 1-800-858-1598.

*LOGO link for media: https://www.send2press.com/300dpi/20-0401s2-armco-logo-300dpi.jpg

ACES Risk Management (ARMCO), the leading provider of enterprise quality management and control software for the lending industry, announced the release of ACESXPRESS for Early Payment Defaults (EPDs) to bolster lenders' existing audit programs in light of the recent increases in required monthly EPD audit volume.

Related link: https://www.armco.us/