As quarterly home lending activity slowed late last year, the risk that the newly made loans would default moved higher.
Mortgage originations during the final-three months of last year worked out to $488 billion, down from $505 billion the prior period.
But the nation’s residential loan production picked up compared to the first quarter of last year, when volume came to just $320 billion.
That is according to
VantageScore Solutions LLC.
For all of 2016, mortgage production amounted to $1.760 trillion, increasing from $1.475 trillion during 2015.
Its Default Risk Index for the latest quarterly originations was 85.4, a level that has the weighted-average probability of default at 0.99 percent.
The probability worsened from three months earlier, when it was
0.96 percent.
But default risk has subsided from a year earlier, when it was 1.06 percent.
