This month we take a closer look at geographical differences in loan performance in the non-agency space. The chart below looks at the 60+ DPD Rate for the 5 Best and Worst performing MSAs (and the overall average). A couple of things to note:
- The pandemic seems to have simply amplified performance differences that were already apparent pre-covid. The worst performing MSAs were showing mostly above-average delinquency rates before last year’s disruption.
- Florida was especially hard-hit. Three of the five worst-performing MSAs are in Florida. Not surprisingly, these MSAs rely heavily on the tourism industry.
- New York jumped from being about average to being one of the worst-performing MSAs in the wake of the pandemic. This is not surprising considering how seriously the city bore the pandemic’s brunt.
- Tech hubs show strong performance. All our best performers are strong in the Tech industry—Austin’s the new Bay Area, right?