CoreLogic Notes Quality of Recent Loan Originations, Warns of Risks Ahead

Posted To: MND NewsWire

In terms of credit risk, the loans originated in the fourth quarter of last year are among the highest quality mortgages originated since 2001 according to CoreLogic. The company’s Housing Credit Index (HCI) compares those loans with those originated in previous quarters based on borrower credit scores, and debt-to-income (DTI) and loan-to-value (LTV) ratios. A rising score on the HCI indicates that new single-family loans have more credit risk than during the prior period, while a declining HCI means that new originations have less credit risk. CoreLogic found the average credit score for money purchase loans rose 4 points from 733 in the fourth quarter of 2015 to 737 in the fourth quarter of 2016. In Q4 2016, the share of homebuyers with credit scores under 640 was about one-tenth of those…(read more)

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Source: Mortgage News Daily

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