CoreLogic: Easing Standards for DTI, LTV Underwriting


Posted To: MND NewsWire

A deep dig into recent home purchase loans shows that some of the underwriting standards employed by FHA and the GSEs (Fannie Mae and Freddie Mac) eased over the year that ended with Q2 2018. Archana Pradhan, an analyst with CoreLogic’s Mortgage Finance and Risk Management Department writes in the company’s Insights blog that neither conventional nor FHA lending extended the easing to their respective treatment of credit scores. CoreLogic looked at the three key factors in mortgage underwriting, debt-to-income (DTI) and loan-to-value (LTV) ratios along with credit scores. The analysis included average scores and ratios, but Pradhan says that measure does not necessary indicate any higher risk to the housing market, so the company included an analysis of the trends in the share of loans originated…(read more)

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