twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Risk on Fannie Loans Rises as Freddie's Eases

National Mortgage Risk Index down in December

Jan. 23, 2014

By Mortgage Daily staff

The level of risk on residential loans originated last month moved lower. On just Fannie Mae loans, risk rose, while it was down on Freddie Mac loans. Both companies saw deterioration from a year earlier, though Fannie's was worse.

In December, the Composite National Mortgage Risk Index -- which was unveiled last month -- came in at 10.81 percent.

The index -- which reflects how mortgages will likely perform under economic stress -- is relatively low compared to roughly 19 percent in 2007, a time when credit standards were the loosest they had been in decades.

In 1990, a year when prudent underwriting standards predominated, the index was around 6 percent.

The NMRI -- which reflects purchase financing originations for Fannie Mae, Freddie Mac, the Federal Housing Administration and the Rural Housing Service -- is published by the AEI International Center On Housing Risk.

"In December, only 45.4 percent of the home purchase loans guaranteed by Fannie Mae, Freddie Mac, FHA, and RHS were rated as low risk, down from 46.4 percent in August," AEI said. "Such a low share is troublesome as stable housing markets depend on the preponderance of home loans being low risk."

The composite index declined 3 percent from November.

On just Fannie loans, the index was 6.13 percent in December, climbing 4 percent from the previous month.

Freddie's index declined 3 percent from November to 5.36 percent.

Compared to a year earlier, Fannie's index has ascended 20 percent, while it was up just 8 percent a Freddie.

"In the tug-of-war between the two agencies, Fannie Mae gained market share at the expense of Freddie Mac between 2012:Q4 and 2013:Q4, consistent with the greater increase in Fannie's risk exposure," the report said.

The risk on FHA-insured loans and Rural Housing Service mortgages originated in December was unchanged from a month earlier at 23.48 percent.

As AEI put it, "by far the riskiest loan portfolios are those guaranteed by FHA and RHS."

Edward Pinto, resident fellow and co-director of international center on housing risk at the American Enterprise Institute, explained in a telephone call that Freddie gained market share in December, while Fannie and FHA lost market share. The change in market share helped drive the month-over-month decline.

next story

back to current headlines

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.

Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders