Q4 2021 Critical Defect Rate Rose to 1.95%, Per ACES Quality Management Mortgage QC Industry Trends Report

Published June 15, 2022

DENVER, Colo., June 16, 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 fourth quarter (Q4) and full calendar year (CY) of 2021. The latest report analyzes post-closing quality control data derived from ACES Quality Management & Control® software.

Notable findings from the Q4 2021 report include:

“While the overall defect rate rose slightly in Q4 2021, defect rates have improved in totality when comparing 2021 to 2020,” said ACES Executive Vice President Nick Volpe. “Given the uptick in Q4 and the persistent issues we’re still seeing in the Income/Employment category, lenders should focus their efforts on shoring up this component of their underwriting process.”

Findings for the Q4 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.

“As lenders battle over volume, quality control and compliance teams are more important than ever to ensure that the loans that make it through the door meet all regulatory and eligibility requirements,” said ACES CEO Trevor Gauthier. “On the origination side, we’re seeing the credit box expand to help qualify more borrowers and maintain share. And with 1.3 million loans still in active forbearance along with the renewed focus on servicing from the CFPB and other regulators, servicers and lenders alike must be diligent in their compliance practices to survive this increased level of scrutiny. Leveraging a system like ACES helps both sides of the house ensure they are auditing to the best and most up-to-date standards.”

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:

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.

Media Contact

Lindsey Neal | DepthPR for ACES Quality Management | (404) 549-9282 | lindsey@depthpr.com

View all news

Improve Productivity And Quality While Controlling Costs And Risk

Request a demo