Home / Media / DS News Webcast: Monday 2/23/2015
Print This Post Print This Post

DS News Webcast: Monday 2/23/2015

The default risk for mortgage loan originations rose in January, marking the fifth straight month-over-month increase, according to the composite National Mortgage Risk Index released by AEI's International Center on Housing Risk. In January, the NMRI for Agency purchase loans increased to a series high of 11.94 percent. That number represented an increase of 0. 4 percentage points from the October through December average and a jump of 0.8 percentage points from January 2014.

Default risk indices for Fannie Mae, FHA, and VA loans hit series highs within the composite, according to AEI. The index for FHA loans in January experienced a year-over-year increase of 1.5 percentage points up to 24.41 percent – meaning that nearly one quarter of all recently guaranteed home purchase loans backed by FHA would be projected to default if they were to experience an economic shock similar to 2007 and 2008.

Mortgage giant Fannie Mae is set to pay the U.S. Department of Treasury nearly $2 billion in March after seeing another profitable quarter. The Enterprise released on Friday its fourth-quarter earnings, posting a net income of $1.3 billion. That compares to a profit of about $6.5 billion in the same quarter a year ago. For all of 2014, Fannie Mae reported profits totaling $14.2 billion, down from $84 billion in 2013.

About Author: Jordan Funderburk

x

Check Also

REO Agents to Share Some Scares

An upcoming webinar presented by Five Star’s FORCE group will explore a number of horror stories told by experienced REO agents, and the lessons learned from these perilous tales.