“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.”
