Tag Archives: Mortgage QC Trends Report

ACES Q3 2024 Mortgage QC Trends Report shows ‘sharp rise in insurance defects’ for second time this year

Fluctuations in key underwriting categories reinforce the need for quality control

DENVER, Colo., Feb. 13, 2025 (SEND2PRESS NEWSWIRE) — 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 Industry Trends Report covering the third quarter (Q3) of 2024. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Image caption: ACES Quality Management.

NOTABLE FINDINGS FROM THE Q3 2024 REPORT INCLUDE THE FOLLOWING:

The overall critical defect rate declined from Q2 to Q3 by nearly 17%, ending the quarter at 1.51%.
Income/Employment was again the leading category of defects at 25%, followed by Assets at 16.67%. Credit and Loan Documentation tied for the third most defects at 12.12% each.
Insurance defects increased more than four-fold from a nominal .65% in Q2 to 3.03% in Q3, demonstrating a volatile pattern since Q1 when the share stood at 8%.
Mirroring the origination environment in Q3, lenders increased their reviews of refinances while defect share declined.
Purchase defect share increased despite a decrease in purchase reviews.
Conventional review share increased slightly in Q3, while FHA, USA and VA loan reviews decreased.
Defects declined significantly for conventional and USDA loans this quarter, while FHA defect share increased by 25%.
VA defect share increased significantly in Q3, though primarily driven by a temporary phenomenon.

“The drop in the overall critical defect rate this quarter is a welcome shift, but the underlying trends tell a more complex story. The sharp rise in insurance defects, combined with fluctuations in key underwriting categories, reinforces the need for lenders to stay agile in their quality control efforts,” said Nick Volpe, executive vice president of ACES Quality Management. “As market conditions evolve, leveraging technology and data-driven insights will be critical to maintaining loan integrity and mitigating future risk.”

Findings for the Q3 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

The 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 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 to improve audit throughput and quality while controlling costs, including:

Over 70% of the top 20 independent mortgage lenders;
7 of the top 10 loan servicers;
11 of the top 30 banks; and
3 of the top 5 credit unions in the United States.

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.

NEWS SOURCE: ACES Quality Management

This press release was issued on behalf of the news source (ACES Quality Management), who is solely responsible for its accuracy, by Send2Press Newswire. Image, if any, was provided by the news source and not this website or the wire service. Information is believed accurate, as provided by the news source, but is not guaranteed.

To view the original story, visit: https://www.send2press.com/wire/aces-q3-2024-mortgage-qc-trends-report-shows-sharp-rise-in-insurance-defects-for-second-time-this-year/

ACES Q2 2024 Mortgage QC Trends Report Reveals Second Consecutive Increase in Critical Defect Rate

Persistent issues in Income/Employment defects and significant defect growth across all major underwriting categories push defect rate closer to 2% threshold

DENVER, Colo., Nov. 20, 2024 (SEND2PRESS NEWSWIRE) — 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 Industry Trends Report covering the second quarter (Q2) of 2024. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software. ACES has altered the timing of this report to better reflect Fannie Mae’s accelerated timeline for post-closing quality control reviews.

Image caption: ACES Quality Management.

Notable findings from the Q2 2024 report include the following:

The overall critical defect rate increased 14.56% to 1.81%, marking the second consecutive quarter of growth.
Income/Employment remains the leading category of defects at 37.01%, followed by Assets at 14.29% and Credit at 9.79%.
Defects increased in all four major underwriting categories, with Income/Employment defects rising the most quarter-over-quarter.
Appraisal defects saw the most significant quarter-over-quarter growth across all categories, increasing by 98.33%.
Insurance defects reversed course from Q1 2024, declining 91.99%.
Lenders continued to prioritize purchase reviews over refinances, with defect share rising 2.71% for purchase transactions and declining 11.66% for refinances.
Conventional and FHA review shares declined slightly this quarter. While VA review share increased somewhat, lenders significantly increased their reviews of USDA loans in Q2.
FHA and VA loan performance improved tremendously over Q1, declining 35.26% and 56.57%, respectively. Conventional defect share increased by 13.59%, but the largest area of concern this quarter is USDA loan defects, which increased by 370.9%.

“This quarter’s rise in critical defects signals that lenders need to double down on quality control efforts, especially as volumes grow,” warned Nick Volpe, EVP of ACES Quality Management. “While the industry’s resilience is evident, the increased scrutiny of income and other key underwriting areas reminds us of the complexities in today’s lending landscape. Proactive adoption of digital tools is key to maintaining high standards and navigating an environment where even minor lapses can impact long-term performance.”

Findings for the Q2 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

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

About ACES Quality Management

Over 70% of the top 20 independent mortgage lenders;
7 of the top 10 loan servicers;
11 of the top 30 banks; and
3 of the top 5 credit unions in the United States.

NEWS SOURCE: ACES Quality Management

To view the original story, visit: https://www.send2press.com/wire/aces-q2-2024-mortgage-qc-trends-report-reveals-second-consecutive-increase-in-critical-defect-rate/

ACES Q3 2023 Mortgage QC Trends Report Finds Critical Defect Rate Declines for Fourth Consecutive Quarter

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the third quarter (Q3) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q3 2023 report include the following:

* The overall critical defect rate decreased by 2.91% to 1.67%, representing four consecutive quarters of decline.

* Defects in the Liabilities category increased for the third straight quarter, whereas Credit and Income/Employment defects decreased significantly.

* Despite its improvement over the last quarter, Income/Employment continues to lead all defect categories, followed by Loan Documentation and Borrower and Mortgage Eligibility.

* Appraisal defects edged up slightly in Q3 after declining in Q2.

* Once again, purchase and refinance transactions achieved relative defect parity, thus firmly solidifying the market's status as being purchase-driven.

* FHA and VA review share increased in Q3, while USDA and conventional reviews declined. However, defect share increased across all loan types except conventional.

"With the last years' worth of defect data trending downward, it's clear lenders have gotten a better handle on loan quality after the alarming spike observed in Q3 2022. A natural result of proactive remediation efforts. However, we would be remiss in not acknowledging the corresponding decline in origination volume," said ACES Executive Vice President Nick Volpe. "While fewer loans may afford lenders the opportunity to intensify their focus on quality, it's clear that maintaining high standards amidst market fluctuations remains paramount. The persistence of this trend underscores the industry's adaptability and dedication to ensuring the integrity of lending practices."

Findings for the Q3 2023 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"As a provider of QC management software, it's been especially gratifying to observe the industry bolster its QC efforts over the last several quarters. With the market inevitably poised for shifts, lenders are now better equipped to manage changes in volume and adapt to regulatory changes," said ACES CEO Trevor Gauthier. "Last year, the lenders that thrived were those who embraced quality control and proactively prepared for the evolving market landscape. We eagerly anticipate witnessing lenders maintain their steadfast commitment to prioritizing quality as they navigate future market dynamics."

The 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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;

* 8 of the top 10 loan servicers;

* 11 of the top 30 banks; and

* 3 of the top 5 credit unions in the United States.

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 its quarterly ACES Mortgage QC Industry Trends Report covering the third quarter (Q3) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

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

ACES Q2 2023 Mortgage QC Trends Report Finds Critical Defect Rate Declines for Third Consecutive Quarter

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the second quarter (Q2) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q2 2023 report include the following:

* The overall critical defect rate decreased by 3.37% to 1.72%, marking the third consecutive quarter of decline.

* Defects in the Credit and Liabilities categories increased for the second straight quarter.

* While Income/Employment and Assets continued to improve, these remain the top two defect categories for Q2 2023, followed by Loan Documentation at No. 3.

* Analysis of the core underwriting sub-categories showed dramatic improvement in Asset Eligibility from Q1, whereas Credit Documentation and Income/Employment quality deteriorated significantly.

* After increasing slightly in Q1, Appraisal defects declined in Q2.

* Q2 marked the third consecutive quarter where purchase and refinance transactions achieved relative defect parity.

* Last quarter's improvement in FHA defects proved momentary, as defects rose this quarter, outstripping review share. Defects decreased across USDA, VA and conventional loans, with VA loans experiencing the most improvement.

"The downward trend in critical defect rates over the last few quarters speaks to the care lenders are putting into each loan. At a time when every loan originated matters, lenders are taking quality control seriously and doing all they can to prevent buyback requests from the GSEs," said ACES Executive Vice President Nick Volpe. "Critical defect rates continue to trend in the right direction, and now, with interest rates trending down at the time of this report, we're looking forward to seeing lenders maintain high loan quality as the market once again changes."

Findings for the Q2 2023 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"Our findings for Q2 have been a welcoming of positive news, and with continued predictions for a more robust origination environment in 2024, the future looks bright for lenders that have survived the drop in volume and increased QC scrutiny," said ACES CEO Trevor Gauthier. "The lenders that have been successful in 2023 are those that have embraced QC and prepared for the next market shift. We're looking forward to watching lenders continue to keep quality at the forefront of their operations."

The 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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;

* 8 of the top 10 loan servicers;

* 11 of the top 30 banks; and

* 3 of the top 5 credit unions in the United States.

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 Industry Trends Report covering the second quarter (Q2) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

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

ACES Q1 2023 Mortgage QC Trends Report Finds Critical Defect Rate Declines for Second Consecutive Quarter

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the first quarter (Q1) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q1 2023 report include the following:

* The overall critical defect rate declined by 3.26%, ending at 1.78% and marking the second straight quarter of decline.

* In the major underwriting categories, Assets and Income/Employment improved, while Credit and Liabilities deteriorated.

* Despite its improvement this quarter, Income/Employment remained the leading defect category, followed by Assets and Legal/Regulatory/Compliance.

* The sub-category analysis showed increases in eligibility-related defects for both the Assets and Credit categories, whereas this seems to have been the primary driver of improvements in the Income/Employment category. However, analysis- and documentation-related errors both increased this quarter, with documentation remaining the largest sub-category of defects for both the Income/Employment and Asset categories.

* Appraisal defects increased, albeit nominally, for the second straight quarter.

* Purchase and refinance shares held steady in Q1, achieving defect parity for the second consecutive quarter.

* FHA defect share declined after two consecutive quarters of increase. While USDA defects continued to improve, VA defects increased significantly in Q1, and conventional defects also grew slightly.

"While the drop in origination volume has challenged the industry, it has also enabled underwriting and QC teams to be more diligent with each loan file, resulting in higher loan quality. The continued decline in the overall critical defect rate on the heels of last year's historic high indicates lenders have not let the desire for volume override the need to reduce errors and mitigate risk," said ACES Executive Vice President Nick Volpe. "With the recent changes to Fannie Mae's pre-funding QC reviews and post-closing QC cycle times, time will tell in the following quarters how diligent lenders have been in maintaining loan quality and investor requirements."

Findings for the Q1 2023 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"The tough decision lenders were faced with at the beginning of the year appear to be paying off. Lenders reported a pre-tax, per-loan net loss of $1,972 in Q1. This result is an improvement over Q4 2022's record $2,812 per-loan loss and reverses the trend of production losses that began in Q4 2020," said ACES CEO Trevor Gauthier. "We expect this data to continue to improve in the coming quarters. Making strategic investments in tech and optimizing operations - especially in QC - can have a significant impact on protecting existing revenue amidst challenging market conditions."

The 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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;

* 8 of the top 10 loan servicers;

* 11 of the top 30 banks; and

* 3 of the top 5 credit unions in the United States.

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 Industry Trends Report covering the first quarter (Q1) of 2023. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

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

Critical Defect Rate Reaches Report-High in Q3 2022, Per ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the third quarter (Q3) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q3 2022 report include the following:

* The overall critical defect rate increased 20.5% over Q2 2022, ending the quarter at 2.47% - a report high.

* Of the four major underwriting categories (Assets, Credit, Income/Employment and Liabilities), three saw moderate to significant increases in Q2 2022. Income/Employment remained the leading category of defects reported, despite continuing its multi-quarter trend of decline.

* A sub-category analysis of the Assets and Income/Employment categories uncovered troubling defect trends related to eligibility.

* Appraisal defects declined once again, now reflecting a multi-quarter trend.

* Purchase share dominated in Q3 2022, as expected given market conditions, while review share for FHA, USDA and VA loans increased.

* In a reversal of last quarter's findings, FHA defect share saw a moderate increase in Q3 2022, along with a slight defect increase in conventional loans. USDA and VA loan defects improved significantly last quarter.

"The overarching theme for this quarter's report is the effect of sharp declines in loan volume and interest rate volatility on lenders' operations. With purchase originations down nearly 20% quarter-over-quarter and close to 50% year-over-year, lenders are fighting to keep every potential piece of business that comes their way and, perhaps, becoming more aggressive in their borrower qualifications," said ACES Executive Vice President Nick Volpe. "Riding the line on eligibility provides little margin for error. Thus, lenders must continue emphasizing loan quality to ensure salability and long-term asset performance."

Findings for the Q3 2022 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"In our last report, we mentioned employment and loan documentation as areas of concern. As layoffs have continued since Q2 2022, we're seeing the ripple effects of interest rate volatility and changing market conditions surface in other areas of the loan manufacturing process, particularly in eligibility," said ACES CEO Trevor Gauthier. "With ACES, lenders can not only identify these immediate areas of concern but also view their QC findings within a historical context to pinpoint trends and execute immediate corrective actions to protect the integrity of their origination pipeline."

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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;

* 8 of the top 10 loan servicers;

* 11 of the top 30 banks; and

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

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 Industry Trends Report covering the third quarter (Q3) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

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

Critical Defect Rates Rose 6% in Q2 2022 Per ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the second quarter (Q2) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q2 2022 report include the following:

* The overall critical defect rate increased 6% over Q1 2022, ending the quarter at 2.05% and crossing the 2% threshold for only the third time in this report's history.

* While Income/Employment defects continue to represent the majority of defects reported, its overall share of defects decreased from the previous quarter.

* Loan Documentation defects increased significantly in Q2 2022, with Closing Documentation errors comprising the vast majority of these defects.

* Appraisal defects continued trending downward for the second straight quarter, improving slightly over Q1 2022.

* Purchase share increased in Q2 2022, reflecting the shift from a refinance market, while conventional loan share remained essentially unchanged.

* Although FHA share increased slightly in Q2 2022, defects declined significantly in this category over the previous quarter. Conversely, VA and USDA defects increased remarkably despite only modest gains in review share, with VA defects more than doubling from the previous quarter.

"The geopolitical and macroeconomic events surrounding Q2 2022 are most certainly the driving factors behind the increase in the overall critical defect rate past the 2% threshold. While the Income/Employment category improved tremendously this quarter, significant defect increases in the Loan Documentation, VA and USDA categories are cause for concern," said ACES Executive Vice President Nick Volpe.

Findings for the Q2 2022 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"With interest rates skyrocketing and severe declines in volume and profitability, Q2 2022 was the perfect storm for the mortgage industry. The market disruption combined with increased competition certainly created ample opportunity for loan defects, hence the increase in Q2r's overall critical defect rate," said ACES CEO Trevor Gauthier. "The takeaway for lenders moving forward is to double down on quality control and risk mitigation to protect the volume they can capture and ensure buyback requests don't diminish profits."

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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;
* 8 of the top 10 loan servicers;
* 11 of the top 30 banks; and
* 3 of the top 5 credit unions in the United States.

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 Industry Trends Report covering the second quarter (Q2) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control software.

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

Critical Defect Rate Declined in Q1 2022 Per ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 Industry Trends Report covering the first quarter (Q1) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q1 2022 report include:

* The overall critical defect ended Q1 2022 at 1.93%, representing a .02% decline from Q4 2022.

* Declining volumes have helped stabilize lender processes, keeping defects at bay, but signs are starting to emerge that the credit box is widening in the hunt for volume.

* Defects in the Income/Employment category continue to remain high.

* The share of appraisal-related defects fell in Q1 2022 after rising in the prior quarter, but signs indicate lenders should pay special attention to this area going forward.

* Purchase and refinance shares remained unchanged from the prior quarter. Conventional loan share continued its multi-quarter trend of decline, with FHA loans filling the void and VA loan share also on the rebound.

* Purchase defects increased specifically I the FHA category, which is expected given purchase loans' dominance in review share and the increase in FHA loans.

"Despite an overall decline in the critical defect rate for Q1 2022, the Income/Employment category remains a glaring problem. Lenders are finding this area a difficult one to rectify, and with staffing changes and new products coming online, it is more important than ever that QC managers get granular findings and feedback to their production group," said ACES Executive Vice President Nick Volpe. "Additionally, as lenders expand the credit box to win the fight for volume, they must be careful not to stretch too far and further exacerbate defects in this category."

Findings for the Q1 2022 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"While the defect increases in three of the four 'core underwriting' categories are cause for concern, it was not all 'doom and gloom' for Q1 2022. Out of the 11 primary loan defect categories ACES tracks, five showed considerable improvement over last quarter, and none more so than the Documentation category, which dropped 37% from 14.57% to 9.09," added Volpe. "This is a tangible example of the importance of quality control reporting. With quality control and quality assurance testing, lenders can course correct and improve the overall quality of their mortgage originations."

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 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 to improve audit throughput and quality while controlling costs, including:

* 60% of the top 50 independent mortgage lenders;

* 8 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 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(r) (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 Industry Trends Report covering the first quarter (Q1) of 2022. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control(r) software.

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

Critical Defect Rate Drops 18% in Q3 2021, Per ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 third quarter (Q3) of 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q3 2021 report include:

* Mortgage lenders managed mortgage origination quality extremely well in Q3 2021, leading to an 18% improvement in the overall credit defect rate.

* Manufacturing-related loan defects decreased as volumes declined.

* Q3 marked the official shift from refinances to a purchase-driven market, with purchase defects increasing as a result.

* Defect performance on conventional loans stabilized while FHA defects rose.

* The Early Payment Defaults trend line indicates that reviews peaked and are now below pre-pandemic levels, shifting the focus to the remaining loans in forbearance status and exit plans for those borrowers.

"The critical defect rate for Q3 2021 dropped 18% to 1.86%, a welcomed improvement from the previous quarter. Lenders also experienced a slight decrease in origination volume, down 8% from Q2 of 2021," said ACES Executive Vice President Nick Volpe. "Metrics are beginning to trend back to their historic normal levels as volume moderates. With the amount of volatility in macroeconomic factors and rising rates, the decline in the overall critical defect rate is a testament to lenders taking quality management and control seriously."

Findings for the Q3 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"An improvement in the critical defect rate is always a positive sign. The worst of early payment default volume seems to be behind us, but we're not out of the woods yet. Lenders' focus should continue to be on helping remaining loans in forbearance status and building exit plans for those borrowers," said ACES CEO, Trevor Gauthier. "Lenders and banks need to be cognizant of the economic and geopolitical environments in the coming months and possibly years. As the Federal Reserve works to calm inflation, these actions oftentimes have a ripple effect, which can certainly impact loan quality."

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 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 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 third quarter (Q3) of 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control® software.

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

Critical defect rate increases 13% Q2 2021, according to ACES Quality Management Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q2 2021 report include:

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

* The continued dominance of the Income/Employment defect category, which reached its highest observed rate since the inception of this report in 2016;

* Improvement in some of the core underwriting categories as well as in manufacturing-related categories, most likely driven by more predictable and stable volumes;

* A significant shift in reviews of refinance versus purchase transactions, further signaling that the transition from a refinance market to a purchase market is well underway;

* Increased share and improved performance for conventional loans; and

* A decline in Early Payment Defaults ("EPDs"), indicating that reviews have peaked and are now below pre-pandemic levels.

"Several factors contributed to the increase in the critical defect rate to 2.27% in Q2 of 2021, including the transition from a refinance market to a purchase market, the previous quarter's falling margins, eviction moratorium uncertainty and rising inflation," said ACES Executive Vice President Nick Volpe. "As the market continues to transition to primarily purchase transactions, lenders should expect continued volatility over the next few quarters and, therefore, keep a close watch on defects for 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 prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"While the increase in the critical defect rate was disappointing, there are several silver linings to our Q2 findings, including volume stabilization and declining unemployment numbers. These, combined with other economic factors, provide some optimism for the coming quarters, though the possible effect of inflation on interest rates may dampen that outlook," said ACES CEO, Trevor Gauthier. "Given the uncertainty of 2022's market and increasing regulatory pressures, lenders must ensure their existing QC and compliance programs are leveraging automation to maximize loan quality and mitigate risk."

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® 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 its quarterly ACES Mortgage QC Trends Report covering the second quarter (Q2) of 2021.

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

ACES Mortgage QC Industry Trends Report Shows Decline in Critical Defect Rate for Second Consecutive Quarter

DENVER, Colo. /ScoopCloud/ -- 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 first quarter (Q1) of 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q1 2021 report include:
* The downward trend in critical defects continued in Q1 2021, ending the quarter at 2.01% versus the prior quarter's rate of 2.09%.

* A rapid rise in the Income/Employment category led all defect categories, with several of the core underwriting/qualification categories increasing as well.

* Declines in the Regulatory Compliance and Loan Documentation categories show that lenders are self-correcting and stabilizing their operations.

* Refinance review share continues to be strong, and defect performance has improved.

* Conventional loans dominated while defect performance declined.

* Early Payment Defaults fall below pre-pandemic levels in a hopeful sign that the worst is behind us, though we remain cautious about loans exiting forbearance status.

"With Q1 2021 marking a second consecutive quarter of decline in the critical defect rate, the record spike observed in Q2 2020 appears to have been a one-off increase, which is encouraging," said ACES Executive Vice President Nick Volpe. "However, lenders and servicers should still proceed with caution, as declines in gain-on-sale, the conclusion of the eviction moratorium, persistent inflation and a potential default wave as forbearances come to an end all have the potential to trigger industry disruption."

Findings for the Q1 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 incorporates data from prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"The declines observed in not only the overall critical defect rate, but also in EPDs and the Regulatory Compliance and Loan Documentation defect categories speak to an industry that has made considerable strides to course-correct after the tumultuous year that was 2020," said ACES CEO Trevor Gauthier. "Unfortunately, 2021 may not prove to be any less challenging, which places even greater emphasis on lenders' defect tracking and reporting efforts to remain ahead of the curve and adjust their operations as necessary to stay on track."

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 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 its quarterly ACES Mortgage QC Trends Report covering the first quarter (Q1) of 2021. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control® software.

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

Q3 2020 Critical Defect Rate Hits Five-Year High, According to ACES Mortgage QC Industry Trends Report

DENVER, Colo. /ScoopCloud/ -- 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 third quarter (Q3) of 2020. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control Software™.

Notable findings from the Q3 2020 report include:

* The overall critical defect rate of 2.34% represents a marked increase from prior quarters and is the highest observed since ACES began publishing the QC Trends Report in 2016.

* Income/Employment defect share fell, showing positive signs, while manufacturing-related defects grew.

* Record lending volume combined with summer home buying led to an increase in overall purchase share from the prior quarter.

* Conventional loans had a strong market share but slipped in terms of quality in Q3.

* Early Payment Defaults (EPDs) declined in Q3, providing reason to be cautiously optimistic.

"Without a doubt, Q3 2020's critical defect rate was the highest we've seen since ACES began publishing the QC Trends Report in 2016, and while there are multiple factors that attributed to the 25% increase in critical defects, the majority of them were COVID-related," said ACES Executive Vice President Nick Volpe. "Given that many of these factors are still at play, we expect to see continued volatility in defect rates for at least several more quarters. However, we did see a decline in EPDs in Q4 2020 to just 110% of their pre-pandemic levels, which provides a measure of optimism after hitting a 200% increase in Q3."

Findings for the Q3 2020 ACES Mortgage QC Industry Trends Report are based on post-closing quality control data from approximately 100,000 unique loans and are categorized using the Fannie Mae loan defect taxonomy and incorporates data from prior quarters and/or calendar years, where applicable. All reviews and defect data evaluated for the report were based on loan audits selected by lenders for full file reviews.

"Despite record interest rate lows, there was still plenty of volatility in the mortgage markets in 2020, as evidenced by the data from Q3. With the pandemic's end not quite yet in sight, lenders need to remain vigilant of the trends impacting their loan quality," said ACES CEO Trevor Gauthier. "More than ever, the transparency ACES provides lenders into their loan performance as compared to their peers delivers valuable insights that can help these institutions not only identify where they are currently falling short in terms of loan quality, but also highlight areas to watch in the future based on industry trends. That ability to be proactive in mitigating defects and risk cannot be overstated, especially in the midst of market volatility and high volumes."

ACES executives will analyze the findings from the Q3 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" as part of its on-going QC NOW Web Series. Visit the QC Now website for upcoming registration details.

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™ 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 third quarter (Q3) of 2020. The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control Software™.

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

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 Q1 2020 Mortgage QC Trends Report: EPDs Rising, Critical Defect Rate Hits Three-Year Low

DENVER, Colo. /ScoopCloud/ -- ACES Quality Management (ACES), formerly known as ARMCO and the leading provider of enterprise quality management and control software for the financial services industry, announced the release of the quarterly ACES Mortgage QC Trends Report. The latest report, which provides nationwide loan quality findings based on data derived from ACES Quality Management and Control Software(TM), covers the first quarter (Q1) of 2020.

Noteworthy findings include:
* Overall critical defect rate of 1.56% matched the lowest rate in three years;
* Defects attributed to the credit and income categories rebounded after climbing higher in Q4 2019;
* Increases in the share of refinances (5%) and conventional loans (2%) contributed to the improvement in the overall defect rate; and
* Early Payment Defaults are on the rise.

"The combination of falling interest rates, employment numbers not yet impacted by COVID-19, and steady property appreciation all contributed to increases in the share of both refinances and conventional loans, which in turn drove the continued decrease in the overall critical defect rate observed in Q1 2020," said ACES Executive Vice President Nick Volpe. "However, the last few weeks of the quarter encompassed the beginning of the COVID-19 pandemic, and given the economic impact of the pandemic on consumers, the number of early payment defaults increased, as one would expect."

"ACES is monitoring this area closely, and the early Q2 data shows the number of EPDs reviewed by lenders through ACES is 75% higher than the average monthly rate of EPD reviews for 2019. Because an EPD review is triggered only when borrowers fall three or more payments behind, this indicates the industry is still in the early stages of the problem, and there is a high likelihood that the number of EPDs will continue to increase," Volpe added.

The Q1 2020 ACES Mortgage QC Industry Trends Report is drawn from nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Quality Management and Control benchmarking system. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"Amid the chaos and uncertainty driven by COVID-19, data provides a clear path forward for lenders. While the industry's focus has been on managing the near-historic volumes, Q1 loan defect data also indicates that lenders must also turn their attention to the growing problem of EPDs, as this represents a significant operation and financial risk to their organizations," said ACES CEO Trevor Gauthier. "The power of ACES benchmarking functionality is that it allows lenders to utilize their current QC data to see what may lie ahead and respond accordingly to maintain loan quality and manage risk. This kind of trend forecasting can be a powerful tool in lenders' arsenals especially with so much uncertainty remaining at a macroeconomic level."

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 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;
* 2 of the top 5 loan servicers; and
* 2 of the top 5 depository institutions.

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), formerly known as ARMCO and the leading provider of enterprise quality management and control software for the financial services industry, announced the release of the quarterly ACES Mortgage QC Trends Report.

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

2019 ARMCO QC Trends Report Indicates Overall Marked Improvement in Critical Defect Rate over 2018

DENVER, Colo. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report, which provides nationwide loan quality findings based on data derived from ACES Audit Technology(TM) covers both the fourth quarter (Q4) and the 2019 calendar year (CY).

"Reduced interest rate volatility and declining interest rates over the course of the year created an environment in which lenders rode a sustained wave of refinances, increased their overall loan production and improved their profitability - all of which contributed to the improvements in loan quality in 2019," said ARMCO Executive Vice President Nick Volpe. "With the rate environment expected to remain unchanged throughout 2020, the loan quality levels observed in 2019 seem sustainable. However, this forecast does not and cannot account for the anomalies triggered by the COVID-19 pandemic. Therefore, lenders will need to keep a sharp eye out for negative spikes in their loan data as 2020 continues."

The report's noteworthy findings include:

* On a quarter-over-quarter basis, critical defect rates improved in the first three quarters of 2019 before reversing the decline and climbing in Q4 2019.
* Q4 2019 ended with a defect rate of 1.73%, an increase of 11% from Q3 2019.
* The share of conventional loans increased from 56.40% in CY 2018 to 61.99%, representing a nearly 6% increase.
* Purchase share fell 7.5% in CY 2019 as compared to CY 2018.
* Regulatory compliance issues were down 51% year-over-year, to a multi-year low of 5.17% of all critical defects.
* Loan Package/Documentation defects were volatile in CY 2019 but did post a 12% improvement compared with CY 2018.
* Income, Assets, and Credit (key qualification/underwriting criteria) related defects made up 53% of all critical defects in CY 2019, with Income and Credit increasing from the prior year, and Asset defects decreasing.
* Market stability contributed to an overall better 2019 for lending quality. However, these improvements will be severely tested as data comes in for the coming quarters as we start to see COVID's impact on mortgage lending.

The Q4/CY 2019 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"While 2019's critical defect rates represent a clear improvement over 2018 and suggest a continuation of that trend moving into 2020, the increase in forbearance requests, high unemployment rates and the potential for early payment defaults to spike later in the year will certainly put this prediction to the test," said ARMCO CEO Trevor Gauthier. "Recognizing the potential need for lenders to ramp up their EPD audit volume, ARMCO launched ACESXPRESS for Early Payment Defaults to better prepare our clients for this possibility and ensure they had a turnkey platform to help them maintain audit requirements and keep a vigilant eye on this potential source of risk."

Volpe will analyze the findings from the Q4/CY 2019 ARMCO 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 - Past Highlights and Predictions for 2020," as part of its on-going QC NOW Web Series. To access the webinar recording, visit https://www.armco.us/learn/webinars/qc-now.

ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports.

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 50 lenders 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.

ACES Risk Management (ARMCO), the leading provider of enterprise quality management and control software for the financial services industry, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report, which provides nationwide loan quality findings based on data derived from ACES Audit Technology covers both the fourth quarter (Q4) and the 2019 calendar year (CY).

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

Refinance Spike Drives Continued Decrease in Critical Defect Rate, According to Q3 2019 ARMCO Mortgage QC Trends Report

DENVER, Colo. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk mitigation solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers third quarter (Q3) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology™.

In Q3 2019, the overall critical defect rate reached 1.56%, representing a 9% decrease from the previous quarter and resulting in the lowest defect rate since Q4 2016. This also represents a 19% improvement from the most recent critical defect rate peak, which occurred in Q4 2018.

"The driving force behind Q3's strong critical defect rate is the increase in refinances, which accounted for 40% of the overall volume of loans reviewed this quarter. Given the current rate environment and overall mortgage market conditions, ARMCO's outlook for both the critical defect rate and the market as a whole remains incredibly strong," said ARMCO Executive Vice President, Nick Volpe.

The report's noteworthy findings include:
* The percentage of government loans reviewed in Q3 fell as the interest rate environment drove more conventional refinances, resulting in a 10% improvement on FHA loan defects compared to the previous quarter.
* Defect performance for purchase loans also improved, with defect categories related to core underwriting and qualification showing improvements over Q2 2019.
* Increase in Property/Appraisal defects driven by lasting effects of Hurricane Dorian, Hurricane Humberto and the multiple wildfires in Northern and Southern California.

"While refinance transactions generally result in fewer defects, volume spikes can often have the opposite impact on loan quality," said ARMCO President, Phil McCall. "Leveraging technology helps lenders better manage mortgage volume peaks and valleys while always keeping the focus on loan quality."

ARMCO's Mortgage QC Industry Trends Reports are based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy. ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports.

About ARMCO

Over half of the top 25 mortgage lenders and 33% of the top 150 lenders and servicers combined choose ARMCO. ARMCO's product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology™, has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing.

ARMCO's consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality. For more information, visit www.armco.us or call 1-800-858-1598.

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk mitigation solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers third quarter (Q3) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology™.

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

ARMCO QC Trends Report: Loan Quality Corrects with Market’s Upturn

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers first quarter (Q1) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM).

"Q1 2019 revealed the loan quality correction we anticipated after Q4 2018, but while there are many positives related to the overall market's upturn, we saw an increase in defects related to key underwriting and eligibility functions," said Nick Volpe, chief strategy officer for ARMCO. "This continues a trend that persisted the entirety of 2019. Lenders shouldn't take this lightly."

The report's noteworthy findings include:
* The critical defect rate fell 6%, from 1.93% in Q4 2018 to 1.82% in Q1 2019
* Defects related to core underwriting and eligibility functions continued to increase, with more defects attributed to Income/Employment than any other category
* Critical defects attributed to missing, expired and/or incorrect documentation continued to be volatile (24% in Q3 2018, 16% in Q4 2018, and 24% in Q1 2019) and noted a substantial increase from the prior quarter
* Compliance-related critical defects fell to their lowest level since Q1 2016, likely the result of greater lender investment in compliance technologies
* Defects related to Property and Appraisal increased noticeably from the previous quarter but remained low overall
* Government-insured loans accounted for a slightly higher share of all loans in the benchmark with FHA, VA and USDA loans comprising 41% of all loans reviewed

The Q1 2019 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"Refi-dominant markets can have a positive impact on defect rates," said Phil McCall, president of ARMCO. "But when volume goes up, individual workloads increase, turn times extend and mistakes tend to increase. Lenders who leverage technology wisely scale much better and expose themselves to fewer losses as a result."

ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports.

About ARMCO
Over half of the top 20 mortgage lenders in the U.S. choose ARMCO as their provider of risk management software. ARMCO's product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology(TM), has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing.

ARMCO's consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality. For more information, visit http://www.armco.us/ or call 1-800-858-1598.

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers first quarter (Q1) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM).

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

ARMCO QC Trends Report: Defects Related to Loan Package Documentation Doubled from 2017 to 2018

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers both the fourth quarter (Q4) and the calendar year (CY) 2018, and provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM).

"Critical defects in 2018 reflect the market's rising interest rates and continued escalation of property values," said Nick Volpe, chief strategy officer for ARMCO. "Fewer highly qualified borrowers transact mortgages when rates increase, which fills the market with more marginal borrowers who tend to require more documentation. It makes sense that defects related to loan package documentation more than doubled from 2017 to 2018."

The report's noteworthy findings include:
* In Q4 2018, the critical defect rate increased just over 2%, reaching 1.93% from the previous quarters rate of 1.89%
* In CY 2018, the critical defect rate increased almost 8% over the previous year, jumping from 1.68% in CY 2017 to 1.81% in CY 2018
* Defects related to Income and Employment are on the rise:
o In Q4 2018, Income and Employment related defects increased 63% over Q3 2018
o In Q4 2018, Income and Employment related defects comprised a greater percentage of total defects for both CY 2018 and CY 2017
* Defects attributed to Loan Package Documentation more than doubled between CY 2017 and CY 2018.
* In Q4 2018, defects attributed to categories related to Underwriting / Eligibility continued to dominate overall quality issues, comprising over 65% of all critical defects.
* In Q4 2018, the top three categories that increased over Q3 2018 were all key qualification categories: Income and Employment, representing 20.39% of all critical defects in the benchmark. This category was followed by Credit at 18.45% and Loan Package Documentation at 15.53%.
* In CY 2018, FHA loans accounted for roughly 31% of the loans reviewed but represented approximately 41% of loans containing critical defects.

The Q4/CY 2018 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"As the market fluctuates, so do the distribution and frequency of defects, and if lenders aren't prepared, that can end up costing them a lot in price adjustments, fees, investor delays and even buybacks," said Phil McCall, president of ARMCO. "Analytical QC technologies enable lenders to catch the defects and proactively prevent them so they can protect their profits. In shifting markets, where defects are like moving targets, that's more important than ever."

ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports.

About ARMCO:
Over half of the top 20 mortgage lenders in the U.S. choose ARMCO as their provider of risk management software. ARMCO's product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology(TM), has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing. ARMCO's consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality. For more information, visit http://www.armco.us/ or call 1-800-858-1598.

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers both the fourth quarter (Q4) and the calendar year (CY) 2018, and provides loan quality findings for mortgages reviewed by ACES Audit Technology.

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

ARMCO Q3 2018 QC Trends Report: Defect Trends Reflect Lower Volume, Hyper-Competitive Market

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers the third quarter (Q3) of 2018, and provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM).

"You can tell a lot about a market from the percentage and distribution of critical defects," said Phil McCall, president and COO of ARMCO. "In Q3 2018, defect activity indicates that lenders are still dealing with the quality issues that result from downsizing. We also see how lower volume markets can impact the quality of their loans."

The report's noteworthy findings include:
* In Q3 2018, the critical defect rate reached 1.89%, its second highest level since the TRID rule went into effect in October 2015, increasing roughly 11% from the previous quarter's rate of 1.71%.
* In Q3 2018, critical defects attributed to Loan Package Documentation spiked nearly 23% over the previous quarter, making Q3 2018 the fourth consecutive quarter to see a significant increase in this category.
* In Q3 2018, the number of defects attributed to the Income/Employment category dropped almost in half, from 22.73% in the previous quarter to 12.50%.
* In Q3 2018, FHA loans accounted for a disproportionate number of critical defects, comprising 28.20% of originated loans in the benchmark, but accounting for 49.55% of loans with critical defects.

"Downsizing can leave lenders with a less qualified workforce, which in turn leads to more errors, particularly with complex transactions and usually with loan documentation," said McCall.

The Q3 2018 Trends Report revealed that the categories of Credit and Liabilities each increased moderately, and the percentage of Property Appraisal-related defects reached its highest point of the year. "This aligns with lower overall production and compressed margins, two key components of a hyper-competitive market," explained McCall. "In an effort to win market share, investors often become more aggressive by expanding eligibility guidelines, while originators try to make up for declining volume by submitting loans of lower than usual quality."

The Q3 2018 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"Analytics in quality control is vital in contracting markets," said McCall. "Lenders that don't use analytical technology will see more defects typical in lower volume, hyper-competitive markets, as well as the delays, fees, fines and even buybacks that can come with them."

ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports.

About ARMCO:
Over half of the top 20 mortgage lenders in the U.S. choose ARMCO as their provider of risk management software. ARMCO's product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology(TM), has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing.

ARMCO's consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality. For more information, visit https://www.armco.us/ or call 1-800-858-1598.

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers the third quarter (Q3) of 2018, and provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM).

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

ARMCO QC Trends Report: Defect Trends Indicate Continued Lender Downsizing

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report provides loan quality findings for mortgages reviewed by ACES Audit Technology(tm) during the second quarter (Q2) of 2018.

The report's noteworthy findings for Q2 2018 include:
* Continuation of several defect trends:
o A significant quarter-over-quarter increase (23.8% over Q1 2018) in defects related to Loan Package Documentation, which are often associated with downsizing and understaffing, a trend that began in the previous quarter, Q1 2018
o The majority of defects were attributed to the Income/Employment category, a trend that began in the previous quarter, Q1 2018
o Core underwriting and eligibility issues were the most frequent cause of critical defects, a trend that has continued since the Q1 2017
* The critical defect rate decreased slightly, from 1.72% in Q1 2018 to 1.71%.
* Defects attributed to Borrower and Mortgage Eligibility increased by roughly 70%, from 6.57% in Q1 2018 to 11.36%

"In Q2 2018, we saw continued increases in defects typically resulting from downsizing and understaffing," said Phil McCall, president and COO of ARMCO. "This seems to indicate that many lenders are still responding to the reduction in business and compressed margins with personnel changes, even in a purchase-dominated market."

Although defects associated with loan package documentation do not usually result in non-saleable loans, they can still have a detrimental impact on profitability. They often result in investors and insurers suspending loan purchases, which can reduce warehouse line capacity and result in price adjustments.

"The market's current fluctuation demonstrates the financial reasons lenders need QC technologies that are dynamic and adaptable enough to respond quickly when the market shifts," said McCall. "Sacrificing quality is a costly but unnecessary consequence of revenue reductions. In reality, no lender needs to accept less than the highest quality, regardless of contracting volumes or margins."

The Q2 2018 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy. Each ARMCO Mortgage QC Industry Trends report includes easy-to-read charts and graphs, a summary that outlines ARMCO's overall findings, a breakdown of defect rates for each Fannie Mae loan defect category, and a short conclusion. ARMCO issues a one-year analysis for the calendar year with each fourth quarter Mortgage QC Industry Trends Report.

ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at https://www.armco.us/learn/reports/.

About ARMCO
Over half of the top 20 mortgage lenders in the U.S. choose ARMCO as their provider of risk management software. ARMCO's product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology(tm), has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing.

ARMCO's consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality.

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

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report provides loan quality findings for mortgages reviewed by ACES Audit Technology(tm) during the second quarter (Q2) of 2018.

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

MQMR: Mortgage Industry Margin Compression Calls for Fixed-Cost Approach to Compliance Support

LOS ANGELES, Calif. /ScoopCloud/ -- Mortgage Quality Management and Research, LLC (MQMR) President Michael Steer today advised lenders to adopt a fixed-cost approach to compliance support in the face of margin compression and declining per-loan profits. By investing in a fixed-cost solution for compliance, lenders can better manage their monthly expenses while ensuring they remain compliant, thus avoiding potential financial penalties associated with non-compliance.

"When internal compliance resources aren't enough, lenders often engage in a one-off relationship with an attorney or other third-party advisory firm specializing in mortgage compliance to address a specific question or issue," Steer said. "Not only is this approach more costly, but it can also expose the lender to unanticipated risk due to the natural delay caused by getting the third-party firm up-to-speed once the contract has been signed. Engaging in a more long-term relationship provides better cost savings and ensures lenders have access to the compliance advice and support they need when they absolutely need it."

To this end, MQMR created its Monthly Compliance On Demand Support program to provide a more cost-effective solution for addressing lenders' ongoing compliance needs. For a flat monthly fee, lenders have discretionary access to MQMR's team of compliance experts to address any compliance questions or concerns.

In addition, MQMR can assist lenders with a range of other compliance needs, including:

* Guidance on federal, state and loan-level questions;
* Development and review of policies and procedures;
* Reviews of advertising and marketing materials, including websites;
* Creation of a Compliance Management System (CMS);
* State examination assistance;
* Advice on loan originator compensation; and
* Recommendations on overall best practices.

"When a lender has an urgent compliance question, their first thought should not be, 'How much is it going to cost me to get this answered?'" Steer noted. "Charging by the minute or the hour may work in some instances, but in today's challenging mortgage environment, lenders simply cannot afford to incur these types of unanticipated expenses. With the fixed-cost approach MQMR provides, lenders rest easy knowing compliance advice and support is only a phone call or email away and that they'll never have to question picking up the phone to get an answer. This is why so many of the nation's top lenders have partnered with MQMR to make it through these challenging times."

About Mortgage Quality Management and Research, LLC (MQMR):

MQMR bridges the gap between risk and compliance through its suite of risk-related services. Since its inception, MQMR has launched multiple products and services to assist lenders in navigating regulatory requirements, including providing mortgage compliance consulting throughout the origination process, conducting internal audit risk assessments and ongoing internal audit support, servicing QC and subservicing oversight to master servicers, and filling the void of meeting vendor management oversight requirements. With 2,000+ operational reviews of mortgage companies, subservicers, document custodians, and vendors annually, MQMR prides itself on being an industry leader in counterparty risk and compliance.

To learn more, visit http://www.mqmresearch.com/, https://subsequentqc.com/, and https://hqvendormanagement.com/.

Mortgage Quality Management and Research, LLC (MQMR) President Michael Steer today advised lenders to adopt a fixed-cost approach to compliance support in the face of margin compression and declining per-loan profits. By investing in a fixed-cost solution for compliance, lenders can better manage their monthly expenses while ensuring they remain compliant, thus avoiding potential financial penalties associated with non-compliance.

Related link: http://www.mqmresearch.com/

ARMCO Releases Fourth Quarter / Calendar Year 2017 Trends Report

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM) during the fourth quarter (Q4) of 2017 as well as the 2017 calendar year (CY).

The report's noteworthy findings include:
* The Q4 2017 critical defect rate increased slightly, from 1.65% to 1.68%
* The percentage of purchase transactions declined for the second consecutive quarter
* The CY 2017 critical defect rate increased seven percent
* The distribution of critical defects shifted significantly from 2016 to 2017.

"In 2016, the categories containing the majority of critical defects reflected the industry's reaction to TRID, which had been implemented at the end of 2015," said Phil McCall, president of ARMCO. "In 2017, we see a shift away from those categories, toward the types of defects that align with the industry's move to a purchase-driven market."

In 2017, the majority of critical defects centered around issues associated with core underwriting and eligibility issues, which is reflective of the deeper complexity of purchase transactions, as compared to refinances.

The Q4/CY 2017 ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

Each ARMCO Mortgage QC Industry Trends Report includes easy-to-read charts and graphs, a summary that outlines ARMCO's overall findings, a breakdown of defect rates for each Fannie Mae loan defect category, and a short conclusion. ARMCO issues a one-year analysis for the calendar year with each fourth quarter Mortgage QC Industry Trends Report.

"When you see how much the issues that impact quality can change quarter to quarter and year over year, it becomes apparent why lenders should use the most current data for strategies going forward," said McCall. "ARMCO provides the Mortgage QC Industry Trends Report for free because we want to arm all lenders with as many tools as possible to achieve quality in the most efficient way possible."

To obtain a copy of the report, please visit https://www.armco.us/knowledge/mortgage-qc-industry-report-2017-q4.

About ARMCO:
ARMCO - ACES Risk Management delivers web-based enterprise financial risk management solutions, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers, investors and outsourcing professionals. A trusted partner devoted to client relationships, ARMCO offers best-in-class quality control and compliance software that provides U.S. banks, mortgage companies and service providers the technology and data needed to support loan integrity, meet regulatory requirements, reduce risk and drive positive business decisions.

ARMCO's flagship product, ACES Audit Technology(TM), is available at any point in the mortgage loan lifecycle, to any size lender, and is user-definable. ACES standardizes audit requirements, ties pre-funding reviews to post-closing quality control audits, enables seamless trend analysis, identifies credit, compliance and process deficiencies and helps create manageable action plans.

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

ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report provides loan quality findings for mortgages reviewed by ACES Audit Technology(TM) during the fourth quarter (Q4) of 2017 as well as the 2017 calendar year (CY).

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

Critical Loan Defect Rates Increase for Third Consecutive Quarter

POMPANO BEACH, Fla. /ScoopCloud/ -- ACES Risk Management (ARMCO), the leading provider of financial quality control and compliance software ACES Audit Technology(TM), announced the release of the ARMCO Mortgage QC Trends Report for the second quarter of 2017.

The ARMCO Mortgage QC Trends Report for second quarter 2017 relays loan quality findings for mortgages reviewed by ACES Audit Technology between April 1, 2017 and June 30, 2017.

Noteworthy findings include:

* The critical defect rate increased for the third consecutive quarter, reaching 1.76 percent in Q2 2017, an increase of 9 percent over the Q1 2017 critical defect rate of 1.61 percent.
* The top critical defect category for Q2 2017 was Borrower and Mortgage Eligibility.
* Purchase loans account for a disproportionately high number of critical defects.

"We're seeing a continuation of critical defect activity that aligns with what we'd expect in a purchase-driven market," said Phil McCall, president of ARMCO. "If they haven't already done so, lenders should consider how they'll address these specific loan quality issues if purchases continue to dominate the market."

The ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 loans selected for random full-file reviews, as was captured by the company's ACES Analytics benchmarking software. Defects listed in the report are categorized using the Fannie Mae loan defect taxonomy.

"Investors are tracking these trends as well, and could make adjustments to protect themselves from what they see as potentially damaging market trends-lenders need to be aware of that," said McCall. "Adjusting QC efforts in the short term can help lenders react to guideline changes with ease and fluidity. We provide the ARMCO QC Trends Report free of charge so all lenders have the chance to adapt and elevate loan quality, and ultimately elevate overall loan quality for the entire industry."

Each ARMCO Mortgage QC Industry Trends report includes easy-to-read charts and graphs, a summary that outlines ARMCO's overall findings, a breakdown of defect rates for each Fannie Mae loan defect category, and a short conclusion. The current and previous reports also contain an analysis of the top credit-related critical defects, which is now a regular feature of the report. ARMCO issues a one-year analysis for the calendar year with each fourth quarter Mortgage QC Industry Trends Report.

To obtain a copy of the report, please visit https://www.armco.us/knowledge/mortgage-qc-industry-report-2017-q2

About ARMCO:

ARMCO - ACES Risk Management delivers web-based audit technology solutions, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers, investors and outsourcing professionals. A trusted partner devoted to client relationships, ARMCO offers best-in-class quality control and compliance software that provides U.S. banks, mortgage companies and service providers the technology and data needed to support loan integrity, meet regulatory requirements, reduce risk and drive positive business decisions.

ARMCO's flagship product, ACES Audit Technology(TM), is available at any point in the mortgage loan lifecycle, to any size lender, and is user-definable. ACES standardizes audit requirements, ties pre-funding reviews to post-closing quality control audits, enables seamless trend analysis, identifies credit, compliance and process deficiencies and helps create manageable action plans.

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

ACES Risk Management (ARMCO), the leading provider of financial quality control and compliance software ACES Audit Technology(TM), announced the release of the ARMCO Mortgage QC Trends Report for the second quarter of 2017. The ARMCO Mortgage QC Industry Trends Report is based on nationwide post-closing quality control loan data from over 90,000 loans selected for random full-file reviews.

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