ARMCO: Critical Defect Rates Continue Upward Trend
By Mike Sorohan
MIAMI--ACES Risk Management, Pompano Beach, Fla., said critical loan defect rates continued to increase in the first quarter. The company's quarterly Mortgage QC Trends Report said the critical defect rate rose to 1.61 percent, a 7 percent increase from the previous quarter. ARMCO reported the top defect category for the first quarter was Borrower and Mortgage Eligibility, although the report noted FHA loans accounted for a disproportionately high number of critical defects.