{"id":55551,"date":"2019-12-19T06:00:05","date_gmt":"2019-12-19T11:00:05","guid":{"rendered":"https:\/\/www.send2press.com\/wire\/?p=55551"},"modified":"2019-12-18T21:40:10","modified_gmt":"2019-12-19T02:40:10","slug":"latest-armco-qc-trends-report-draws-correlation-between-lenders-profitability-and-adaptability-to-market","status":"publish","type":"post","link":"https:\/\/www.send2press.com\/wire\/latest-armco-qc-trends-report-draws-correlation-between-lenders-profitability-and-adaptability-to-market\/","title":{"rendered":"Latest ARMCO QC Trends Report Draws Correlation Between Lenders&#8217; Profitability and Adaptability to Market"},"content":{"rendered":"<p>DENVER, Colo., Dec. 19, 2019 (SEND2PRESS NEWSWIRE) &#8212; <a href=\"http:\/\/www.armco.us\/\" rel=\"nofollow\">ACES Risk Management<\/a> (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly <a href=\"https:\/\/www.armco.us\/learn\/reports\/q2-2019-armco-mortgage-qc-industry-trends\" rel=\"nofollow\">ARMCO Mortgage QC Trends Report<\/a>. The latest report covers second quarter (Q2) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology&#x2122;.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.send2press.com\/wire\/images\/17-0925-armco-aces-risk-696x522.jpg\" alt=\"ARMCO - Aces Risk Management\" width=\"696\" height=\"522\" class=\"alignnone size-full wp-image-29280\" srcset=\"https:\/\/www.send2press.com\/wire\/images\/17-0925-armco-aces-risk-696x522.jpg 696w, https:\/\/www.send2press.com\/wire\/images\/17-0925-armco-aces-risk-696x522-300x225.jpg 300w, https:\/\/www.send2press.com\/wire\/images\/17-0925-armco-aces-risk-696x522-600x450.jpg 600w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><br \/>\nIn Q2 2019, the overall critical defect rate declined for two consecutive quarters for the first time since Q3 2016, falling 5.5% to 1.72%. The industry\u2019s two-quarter decline in critical defects coincides with two consecutive quarters of strong but steady loan volume and a three-year high in lender profitability, according to the most recent Quarterly Performance Report issued by the Mortgage Bankers Association (MBA).\u00a0In October 2019, the MBA Economic Forecast predicted 2019 origination volume to reach $2.06 trillion, its highest level since 2007.<\/p>\n<p><strong>The report\u2019s noteworthy findings include:<\/strong><\/p>\n<ul>\n<li>Loan quality trends are positive: the overall critical defect rate in Q2 2019 fell 5.5% from the preceding quarter, with a 9.0% decline from the 2018 peak rate of 1.93% (Q4 2018)<\/li>\n<li>In Q2 2019, defects in Income\/Employment and Credit, both core underwriting functions, declined 32.0% and 22.0% respectively, from the preceding quarter<\/li>\n<li>Interest rates in Q2 2019 were roughly a full point lower than Q2 2018 (3.3% vs 4.2%), which fueled a high refi-to-purchase ratio<\/li>\n<li>In Q2 2019, refinances comprised a higher percentage of all loans reviewed when compared to previous quarters, and were a driver in the quarter\u2019s lower critical defect rates<\/li>\n<li>In Q2 2019, critical defects on FHA loans underperformed conventional loans by a greater percentage than previous quarters<\/li>\n<\/ul>\n<p>According to Nick Volpe, chief strategy officer at ARMCO, volume fluctuations like those seen in the quarters prior to Q1 2019 and Q2 2019 cause challenges for lenders, which often respond to sudden spikes and dips by adjusting their labor forces through layoffs, downsizing, re-allocating staff and hiring.<\/p>\n<p>\u201cThese changes upset the status quo and usually result in more defects, because staff instability increases errors and oversights,\u201d he said. \u201cWhen lenders adapt, usually when the market steadies, defects decrease. It is therefore safe to say that when lenders use technology that improves their scalability, they increase profitability faster than those who rely on manual processes.\u201d<\/p>\n<p>\u201cThe positive benefits of technology like ACES go way beyond the immediate boost to speed and accuracy,\u201d said Phil McCall, president of ARMCO. \u201cAs the data reveals, they have a real impact on the speed to which lenders can return to heightened profitability. It\u2019s extremely satisfying to know that we\u2019re enabling our customers to not just reduce costs, but also to proactively increase profits.\u201d<\/p>\n<p>ARMCO\u2019s Mortgage QC Industry Trends Reports are based on nationwide post-closing quality control loan data from over 90,000 unique loans selected for random full-file reviews, as was captured by the company\u2019s ACES Analytics benchmarking software. Defects listed in the report are categorized using the <a href=\"https:\/\/www.fanniemae.com\/content\/fact_sheet\/loan-defect-categories.pdf\" rel=\"nofollow\">Fannie Mae loan defect taxonomy<\/a>.<\/p>\n<p>ARMCO Mortgage QC Industry Trends Reports are available for download, free of charge, at <a href=\"https:\/\/www.armco.us\/learn\/reports\" rel=\"nofollow\">https:\/\/www.armco.us\/learn\/reports<\/a>.<\/p>\n<h3><strong>About ARMCO<\/strong><\/h3>\n<p>Over half of the top 20 mortgage lenders in the U.S. choose ARMCO as their provider of risk management software. ARMCO\u2019s product line includes loan quality enterprise software, services, data and analytics. Its flagship product, ACES Audit Technology&#x2122;,\u00a0has set the bar for user definability in its category. It is used at virtually every point in the mortgage lifecycle, as well as for a wide range of risk-prone business operations outside traditional mortgage origination and servicing. <\/p>\n<p>ARMCO\u2019s consultative approach to customer relationships leverages 25 years of mortgage risk intel, assuring that its clients are using the most effective risk mitigation strategies, and are using the fastest, most reliable, most efficient means for preventing risk-related loss. ARMCO distributes the ARMCO Mortgage QC Industry Trends Report, a free quarterly analysis of industry-wide mortgage loan quality.\u00a0For more\u00a0information, visit\u00a0<a href=\"http:\/\/www.armco.us\/\" rel=\"nofollow\">http:\/\/www.armco.us\/<\/a>\u00a0or call 1-800-858-1598.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DENVER, Colo., Dec. 19, 2019 (SEND2PRESS NEWSWIRE) &#8212; ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced the release of the quarterly ARMCO Mortgage QC Trends Report. The latest report covers second quarter (Q2) 2019 and provides loan quality findings for mortgages reviewed by ACES Audit Technology.<\/p>\n","protected":false},"author":4935,"featured_media":29280,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[39,1,29,141,38,264],"tags":[9346,12597,302],"class_list":["post-55551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage-news","category-business-news","category-colorado-news","category-denver-news","category-finance-news","category-research-reports-news","tag-armco-mortgage-qc-industry-trends-report","tag-fha-loan-quality","tag-risk-management","has-post-title","has-post-date","no-post-category","no-post-tag","no-post-comment","has-post-author"],"acf":[],"views":4339,"_links":{"self":[{"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/posts\/55551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/users\/4935"}],"replies":[{"embeddable":true,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/comments?post=55551"}],"version-history":[{"count":0,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/posts\/55551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/media\/29280"}],"wp:attachment":[{"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/media?parent=55551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/categories?post=55551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.send2press.com\/wire\/wp-json\/wp\/v2\/tags?post=55551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}