Refinance Complexity Boosted Rate of Critical Defects in Mortgages in Q2

MortgageOrb | By Patrick Barnard

Published November 20, 2025

The rate of critical defects in mortgage loans post-closing was 1.51% in the second quarter, an increase of 15.27% compared with 1.31% in the first quarter, according to ACES’ Mortgage QC Industry Trends Report. Driving the increase was refinance complexity, which tests loan quality, the firm says.

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