The ACES Q3 2024 report revealed a 17% decrease in critical defect rates in mortgages, down to 1.51%. Income and employment defects remained the highest at 25%, showing improvement. However, there was an increase in defects related to calculations, analysis, and eligibility, raising concerns. Insurance defect rates also surged from 0.65% to 3.03%, driven by changes in natural disaster impacts on insurance premiums. Lender agility in quality control is increasingly essential to navigate these fluctuating defect patterns, underscoring the complexity of the mortgage landscape.
The Q3 2024 report indicated a critical defect rate of 1.51%, a 17% decline from 1.81% in Q2, but revealed underlying complexities.
Nick Volpe emphasized that while lenders made progress in income and employment defects, rising issues in Calculation/Analysis and Eligibility are concerning.
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