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The composite Agency National Mortgage Risk Index (NMRI) for January 2016 released by AEI’s International Center for Housing Risk on Wednesday, covering both purchase loans and refinances, climbed by zero point 44 percentage points up to 11 point 70 percent for January 2016. This increase continues an upward trend that is 25 months long and counting—the NMRI has now risen year-over-year every month since January 2014.
The Agency NMRI covers 18 point 2 million mortgage loans with a government guarantee dating back to November 2012. The index measures how government-guaranteed loans with a first payment date in a given month would perform under the same adverse economic conditions experienced during the financial crisis of 2007 and 2008. An NMRI value of 11 point 70 percent for a set of loans indicates that 11 point 70 percent of those loans would default under such adverse economic conditions.
Commercial banks and savings institutions insured by the FDIC experienced a drop in litigation expenses and a rise in net operating revenue in the fourth quarter of 2015, and as a result their aggregate net income jumped by 12 percent over-the-year in Q4, according to the FDIC’s latest Quarterly Banking Profile released Wednesday. That 12 percent increase calculates to an increase of 4 point 4 billion dollars up to 40 point 8 billion dollars, according to the FDIC.
