Key facts
- ACES Population Testing evaluates a specified portion of a client's loan portfolio against applicable policies.
- Clients can choose to evaluate up to 100% of their portfolio.
- The service identifies risk indicators for closer examination by internal teams.
- Traditional mortgage QC narrows a portfolio to a sample for deeper review.
- ACES Population Testing measures broadly first, then narrows focus.
- Organizations can gradually expand scope as their teams and remediation processes mature.
ACES Quality Management has introduced ACES Population Testing, a new service aimed at enhancing quality control in the mortgage industry by moving beyond traditional sample-based audits. Phil McCall, President and Chief Operating Officer at ACES, explained that the service allows clients to evaluate a chosen percentage of their loan portfolio, up to 100%, against specific policies. This approach identifies risk indicators that human review teams can then investigate further.
McCall contrasted this with conventional mortgage QC, which typically starts by selecting a sample from a larger portfolio for in-depth analysis. ACES Population Testing reverses this, first evaluating the broader population and then directing teams to areas requiring closer attention. The company emphasizes that the technology is designed to augment, not replace, human judgment and QC teams, providing them with a more comprehensive view of portfolio risk.
Organizations can implement population-level testing incrementally, starting with a smaller percentage of their portfolio or a specific business line and increasing coverage as their remediation processes mature. McCall noted that the goal is to provide a "dial" for risk assessment rather than a "light switch," allowing for manageable implementation.
Data from ACES's Q4 2025 Trends Report indicated significant shifts in critical defect rates throughout the year, highlighting how sample-based testing might miss crucial trends. The new service aims to address these gaps by evaluating data more frequently, even as source data refreshes, thereby catching changes that might occur between traditional monthly or quarterly reviews.
McCall stressed that the technology focuses on removing repetitive tasks to allow teams to concentrate on judgment and decision-making. He also highlighted the importance of explainability, stating that the system can trace flagged records back to specific rules and data points, making the process defensible to regulators and investors.