Refi shift drives latest increase in mortgage defect rates

Plummeting mortgage rates during the third quarter last year started a shift in originators’ business mix towards refinance, and this, more than a lessening emphasis on loan manufacture quality, resulted in a huge jump in defect rates, Aces Quality Management said.

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For the last week of June, the 30-year conforming fixed rate mortgage was at 6.77%, according to Freddie Mac. It…