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GSE Portfolio Shows Improvement

The Urban Institute September chart book was recently released, outlining refinances, serious delinquencies, and the government sponsored enterprises delinquency rates, amongst various other statistics related to the industry.

According to the report, refinances have been down since election day in November, but have leveled out in August 2017 at a rate of 34 percent, 37 percent, and 25 percent of Fannie Mae, Freddie Mac, and Ginnie Mae’s portfolio, respectively.

Negative equity (properties with a loan-to-value ratio greater than 100) has been on the slow decline since the fourth quarter of 2011, which now stands at 5.4 percent. Another 1.4 percent of residential properties are on the verge (LTV from 95 to 100) of becoming delinquent in Q2 2017, as of CoreLogic and Urban Institute’s combined data.

Loans in serious delinquency also fell a nominal rate from 1.37 to 1.2 percent, and the foreclosure rate also fell to 1.29 percent. Year-over-year, combined delinquencies fell from 3.11 percent from 2.49 percent. Combined delinquencies stood at 2.76 percent in Q1 of 2017.

The delinquency rates for loans in the government sponsored enterprise’s portfolio also continued to decline. The number of loans in Fannie Mae’s portfolio that were seriously delinquent in July 2016 stood at 1.30 percent; in July 2017 that figure was 1.0 percent. As for Freddie Mac, current loans in serious delinquency are 0.85 percent, down from 1.08 percent a year prior.

The full report is available on Urban Institute’s website.

About Author: Joey Pizzolato

Joey Pizzolato is the Online Editor of DS News and MReport. He is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines. To contact Pizzolato, email joseph.pizzolato@thefivestar.com.
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