The Default Rates for GSE Loans

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Foreclosure, News About Author: Radhika Ojha Servicers Navigate the Post-Pandemic World 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / The Default Rates for GSE Loans Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: default Delinquency Fannie Mae Foreclosures Freddie Mac loans Urban Institute default Delinquency Fannie Mae Foreclosures Freddie Mac loans Urban Institute 2018-12-03 Radhika Ojha  Print This Post Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Previous: Vendorly Expands Offerings with Contract Management Tool Next: RMBS in 2019 December 3, 2018 5,565 Views The Best Markets For Residential Property Investors 2 days ago The Default Rates for GSE Loans Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Default rates for the government-sponsored enterprises (GSEs) are much lower than they were a few years ago, according to an analysis of vintage loan level GSE credit data by the Urban Institute.The data was analyzed as part of the Institute’s Monthly Chartbook for November. Looking at Fannie Mae and Freddie Mac’s 1999-2003 vintages, the analysis revealed that cumulative defaults totaled around 2 percent while those for loans from 2007 were at around 13-14 percent. However, they began to fall starting with the post-2009 vintage of loans, which are on pace to fall below the pre-2003 levels.The analysis revealed, for Fannie loans 88 months after origination, the cumulative default rate from 2009-10 and 2011-Q3 2017 were about 0.96 and 0.37 percent, respectively, compared to the cumulative default rate from 1999-2003 of 1.35 percent. For Freddie loans 85 months after origination, the cumulative default rates totaled 0.94 percent from 2009-10 and 0.22 percent from 2011-Q3 2017, compared to the rate from 1999-2003 of 1.24 percent.The analysis also looked at the status of the loan after it had experienced a credit event (defined as a delinquency of 180 days or more, a deed-in-lieu, short sale, foreclosure sale, or REO sale) and found that for Fannie Mae loans 14.7 percent were current, 16.1 percent were prepaid, 10.2 percent were still in the pipeline, and57.8 percent were already liquidated. Freddie Mac loans also showed similar results.The Monthly Chartbook also looked at the latest data on FHA-insured loans and their refinance activity to reveal that despite a sound performance, the FHA’s recently released Mutual Mortgage Insurance Fund (MMI Fund) report indicated a rise in cash-out refinance activity in 2018. According to the report, the number of cash-out refinance mortgages endorsed by the FHA increased from 141,885 in FY 2017 to in 150,883 in FY 2018, a 6.3 percent rise. As a share of total endorsement count, cash-out was nearly 15 percent, compared to 11.4 percent last year.The Urban Institute analysis pointed out a couple of reasons for the rise in this activity. First was the rising mortgage rates that have significantly curtailed rate refinances loans, which in turn were boosting the share of cash-outs.Second, according to the analysis was the 85 percent maximum loan-to-value (LTV) ratio for FHA cash-out refinances vs. 80 percent for conventional cash-outs. “In other words, borrowers can extract more equity through an FHA cash-out than a conventional one. Also, FHA cash-out refinances can be more cost-effective than conventional cash-outs for some borrowers because of a lower base FHA mortgage rate and FHA’s non-risk-based pricing,” the analysis said.To read the full report, click here. The Week Ahead: Nearing the Forbearance Exit 2 days ago Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Sign up for DS News Daily last_img read more

Colombian President Requests Colombian ELN Guerrilla’s Discretion

first_imgBy Dialogo November 19, 2012 Colombian President Juan Manuel Santos requested the ELN guerrillas’ “discretion” on November 14 as they approach peace talks, after that group announced over the weekend that they had already chosen delegates for peace talks. “We have understood that any approach with any group has to be ruled by a series of principles, and one of them is discretion,” said Santos, who is currently in Lisbon. “If the ELN wants some kind of approach, they must respect this principle. In due course we will respond through the adequate channels; the worst thing we can do is to start answering or dialoguing through the media,” added the head of state, according to a presidential press release. Santos’ remarks come after the National Liberation Army (ELN), the second largest Colombian guerrilla group with 2,500 combatants, announced that its delegation “is already formed and ready to honor Colombia in an exploratory dialogue with the government.” The ELN statement occurs a few days before the peace talks start in Havana with the Revolutionary Armed Forces of Colombia (FARC), in combat since 1964 and currently consisting of 9,200 guerrilla members. In that respect, Santos thanked Cuba for its support, which together with Norway, is serving as a guarantor in the peace process with the FARC. “I want to thank Cuba for being a host, as well as for helping us enormously in this coordination. The way Cuba has collaborated deserves our recognition, our gratitude,” he said. Santos’s government and the FARC formally launched their peace process on October 18 in Oslo, and on November 19, they started conversations in Havana with a five-point agenda: rural development, illicit drugs, political participation, disarmament, and victims. This dialogue is taking place without a ceasefire in Colombia.last_img read more

Eintracht Frankfurt drag West Ham to FIFA

first_img Loading… read also:ASEAN, FIFA and football stars launch #BeActive campaign For the 2019/20 season, the 26-year-old Haller has played 34 matches in all competitions with West Ham, scoring 7 goals. FacebookTwitterWhatsAppEmail分享 Eintracht Frankfurt has approached FIFA to push West Ham about late payment for the fee of Sebastien Haller. BILD reports the Hammers are two months late with a due payment and Eintracht have taken the case to FIFA. The next tranche of €6m from the full €40m, for which West Ham acquired the Frenchman in the summer of 2019, was to go into the Eagles’ accounts by the end of May.Advertisementlast_img read more