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

Loan Documentation, VA and USDA defects saw significant increases while Income/Employment defects declined

Published December 14, 2022

DENVER, Colo., Dec. 15, 2022—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 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

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:

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 or call 1-800-858-1598.

Media Contact

Lindsey Neal | DepthPR for ACES Quality Management | (404) 549-9282 |

View all news

Improve Productivity And Quality While Controlling Costs And Risk

Request a demo