CRT Deal Monitor: April 2019 Update

CRT Deal Monitor: Understanding When Credit Becomes Risky  This analysis tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis.   Some of the charts in this post have interactive features, so click around! We’ll be tweaking the analysis and adding new metrics in subsequent months. Please shoot us an email if you have an idea for other...

CRT Deal Monitor: March 2019 Update

CRT Deal Monitor: Understanding When Credit Becomes Risky  This analysis tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis.   Some of the charts in this post have interactive features, so click around! We’ll be tweaking the analysis and adding new metrics in subsequent months. Please shoot us an email if you have an idea for other...

CRT Deal Monitor: October 2018 Update

RiskSpan’s CRT Deal Monitor tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis. The analysis depicts visually how credit metrics are trending today and shows…

CRT Deal Monitor: Understanding When Credit Becomes Risky

This analysis tracks several metrics related to deal performance and credit profile, putting them into a historical context by comparing the same metrics for recent-vintage deals against those of ‘similar’ cohorts in the time leading up to the 2008 housing crisis. You’ll see how credit metrics are trending today and understand the significance of today’s…

RiskSpan VQI: Current Underwriting Standards – August 2018

RiskSpan’s Vintage Quality Index (VQI) held mostly steady in August, nudging up to 99.43 compared to 99.02 in July. The slight increase (indicative of generally looser underwriting standards) reflects modest increases in the proportion of high-LTV (over 80%) loans and mortgages with second liens behind them. These increases were offset for the most part by…

RiskSpan VQI: Current Underwriting Standards – July 2018

RiskSpan’s Vintage Quality Index (VQI) fell below 100 for the first time in 2018, settling at 99.02 and continuing a trend of mild tightening in underwriting standards. The decline was driven in part by a slight decrease in the proportion of high-LTV loans, cash-out refis, and single-borrower loans. The remaining risk layers held fairly constant. RiskSpan…

RiskSpan VQI: Current Underwriting Standards – June 2018

RiskSpan’s Vintage Quality Index (VQI) fell slightly, from 102.59 in May to 100.76 in June 2018, indicating a mild tightening but no major changes in underwriting standards. A slight increase in the proportion of loans made to borrowers with LTVs greater than 80% was offset by a reduction cash–out refis.  RiskSpan introduced the VQI in 2015 as a way of quantifying the underwriting environment of a particular…

RiskSpan VQI: Current Underwriting Standards – May 2018

RiskSpan’s Vintage Quality Index (VQI) held steady at 102.59  for the month of May 2018 indicating no major changes in underwriting standards associated with a particular vintage of mortgage loans. In 2015, RiskSpan introduced the Vintage Quality Index (VQI) as a way of quantifying the underwriting environment of a particular vintage of mortgage originations. The idea is to provide…

RiskSpan VQI: Current Underwriting Standards – April 2018

The Vintage Quality Index continued to climb during April 2018–a reflection of rising debt-to-income ratios and falling credit scores–settling at 102.6 In 2015, RiskSpan introduced the Vintage Quality Index (VQI) as a way of quantifying the underwriting environment of a particular vintage of mortgage originations. The idea is to provide credit modelers a way of controlling for…