Rate of Critical Defects in Mortgage Loans Decreased in Q3

MortgageOrb | By Patrick Barnard

Published February 18, 2025

he rate of critical defects in mortgage loans post-closing decreased by nearly 17% in the third quarter, ending the quarter at 1.51%, according to ACES Quality Management Mortgage QC Trends Report.

However there was a sharp rise in insurance defects compared with the previous quarter. Insurance defects increased more than four-fold to 3.03%, up from a nominal .65% in the second quarter.

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