A brief increase in refinance activity during the first quarter of 2026 pushed the defect rate to a recent high, according to ACES Quality Management.

Repurchases were down nearly 20% compared with the fourth quarter of 2025. Reserves for repurchases also declined. (Includes one data table.)

Lenders are ultimately responsible for the quality and accuracy of appraisals. That means their quality control teams need to review every appraisal to preserve rep-and-warrant protection.