The default rate on subprime mortgage loans jumped nearly 150 basis points in August to a record high of 16.1%, and the foreclosure rate jumped 82 bps to 6.8%, as declining house prices began to take their toll on credit performance, according to a Friedman Billings Ramsey Investment Management report.Michael Youngblood, FBRIM's managing director of fixed-income research, notes that falling house prices are becoming a factor in the latest surge in subprime defaults. The researcher points out that 49 metropolitan statistical areas in six states, representing 46% of all subprime loans, have experienced a 200% or more increase in defaults since August 2006. "Furthermore, we count 43 housing price bubbles in these 49 MSAs, whereas we count only 69 house price bubbles in all 363 MSAs," Mr. Youngblood says in the report. The report also indicates that the default rate on alternative-A loans jumped 62 bps to 3.96% in August, and the foreclosure rate rose 41 bps to 1.96%. (The default rate includes loans 90 days or more past due, in foreclosure, and real estate owned.)
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
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In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
April 18 -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
April 18 -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18