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… ShareTweetShare+1

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… ShareTweetShare+1

Institutionalization of the Single-Family Rental Market

FinTech advancements in big data analytical capabilities are prompting Wall Street to turn its focus to non-traditional real estate markets–specifically single-family rental homes. Overview of the Single-Family Rental (SFR) Market The housing crisis created a significant shift from homeownership to renting. According to research by RCLCO, a real estate advisory group, single-family rentals made up… ShareTweetShare+1

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… ShareTweetShare+1

Is This a “Qualified Mortgage”? Ask Fannie Mae

Who really defines what constitutes a “Qualified Mortgage”? The answer, though codified in federal regulation, is not as simple as it may appear. Updates to Regulation Z in response to the Dodd-Frank Act seem straightforward enough. Under the regulation, “Qualified Mortgage” status is presupposed so long as: 1) the loan lacks certain characteristics, including negative… ShareTweetShare+1

qualified mortgage high dti

Houston Strong: Communities Recover from Hurricanes. Do Mortgages?

The 2017 hurricane season devastated individual lives, communities, and entire regions. As one would expect, dramatic increases in mortgage delinquencies accompanied these events. But the subsequent recoveries are a testament both to the resilience of the people living in these areas and to relief mechanisms put into place by the mortgage holders. Now, nearly a… ShareTweetShare+1

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… ShareTweetShare+1

From Main Street to King Abdullah Financial District: Lessons Learned in International Mortgage Finance

In December 2016, I was asked to consult on a start-up real estate refinance company located in the Saudi Arabia. I wasn’t sure I understood what he was saying. As someone who has worked in the U.S. mortgage business since college, the word “refinance” has very strong connotations, but its use seemed wrong in this… ShareTweetShare+1

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… ShareTweetShare+1