Loan defect share improved even as mortgage rates rose in 4Q

National Mortgage News | By Brad Finkelstein

Published May 15, 2025

The volatile mortgage rate environment in the fourth quarter last year did not impact the quality of closed applications, with critical defects falling to their second lowest level on record, Aces Quality Management found. "Lenders made meaningful progress in loan quality in 2024, closing the year with one of the lowest quarterly critical defect rates we've ever observed," said Aces Executive Vice President Nick Volpe, in a press release.

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