Rising Credit Risk Remains in Normal Bounds


Posted To: MND NewsWire

Mortgage credit risk has edged up over the last year, but CoreLogic says that it remains well within an acceptable range , comparable to that of loans issued in the early 2000s. The company analyzed six credit risk attributes in newly originated loans, and has released the results of its Housing Credit Index (HCI) for the third quarter. The company’s index indicates the relative increase or decrease of in credit risks in the following categories; borrower credit score and debt-to-income (DTI) ratio, loan-to-value (LTV) ratio, portion of loans that are investor-owned, the condo/co-op share, and documentation level. The HCI rose 18 points between the third quarter of 2016 and the same quarter this year, increasing from 93.1 to 111.1. Despite the increase, the company says the risk level is still…(read more)

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