Moves by lenders to adapt their processes with the TILA-RESPA integrated disclosure rule in mind appear to have staunched the increase in loan application defects, according to a report from ACES Risk Management.

The overall critical defect rate dropped to 1.63% in the second quarter of 2016 from 1.92% a quarter earlier, ARMCO noted in its Mortgage QC Industry Trends report. While this ended a three-quarter period in which this rate rose following the implementation of TRID, it was still well above the critical defect rate of 0.77% reported in the third quarter of 2015.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry