DENVER, Colo., June 22, 2021 (SEND2PRESS NEWSWIRE) — 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 Trends Report covering both the fourth quarter (Q4) and the 2020 calendar year (CY). The latest report provides an analysis of post-closing quality control data derived from ACES Quality Management & Control Software™.

ACES Quality Management

Notable findings from the Q4/CY 2020 report include:

  • The overall critical defect rate improved to 2.09%, which was lower than the prior quarter but still higher than other quarters in 2020.­
  • Loan Documentation defects rose in 2020, which was most likely driven by pandemic-related issues and symptomatic of manufacturing-related defects overall.
  • 2020 was dominated by refinances as a result of pandemic-driven historically/record low interest rates.
  • Conventional loan share hit its highest point since ACES began publishing the QC Trends Report in 2016.
  • Early Payment Defaults decreased in Q4 2020 and Q1 2021, providing some hope for the future, but lenders should be mindful of upcoming forbearance-related deadlines.

“Despite the distinct differences in the Fannie Mae defect categories of 2020 compared to previous years, the defect share for Income and Employment in 2020 was 23.95%, just above 2019’s defect share of 23.10%,” said ACES Executive Vice President Nick Volpe. “Of the remaining core credit categories, liabilities is the only category to increase in 2020. This is a testament to the agility lenders showed last year, despite the continuing challenges lenders faced in maintaining loan quality.”

Findings for the Q4/CY 2020 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 incorporates 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.

“It would be easy to say the last two quarters of 2020 were dismal, but considering the pandemic, unemployment and critical defect rates, our Q4 findings are buoyant,” said ACES CEO Trevor Gauthier. “Critical defect rates and early payment defaults will continue to be areas to watch closely, particularly as lenders respond to the changing landscape of 2021 and more borrowers come out of forbearance.”

ACES executives will analyze the findings from the Q4 2020 ACES Mortgage QC Industry Trends Report and offer insights into what lenders can expect in future quarters during a webinar titled, “Insights into Mortgage QC Trends” as part of its ongoing QC NOW Web Series. Visit the QC Now website for upcoming registration details.

Mortgage QC Industry Trends Reports are available for download, free of charge, at

About ACES Quality Management

ACES Quality Management, formerly known as ACES Risk Management (ARMCO), 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:

  • 3 of the top 5 and more than 50% of the top 50 independent mortgage lenders;
  • 7 of the top 10 loan servicers;
  • 11 of the top 30 banks; and
  • 1 of the top 3 credit unions in the USA.

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 or call 1-800-858-1598.

News Source: ACES Quality Management