UFA: Nonprime Risk Holds Steady

The risk that mortgages of nonprime credit quality will go into default remained steady in the winter of this year, according to University Financial Associates.The UFA's Nonprime Mortgage Report for Winter 2004 registered a reading of 99, down one point from 100 the previous quarter. A reading of 100 means the risk of default on newly originated nonprime loans is equal to the average risk of default for loans originated during the 1990s. A lower reading indicates a lower risk level. UFA said the index has risen by 10% since 2001 but remains moderate by historical standards.