On March 24 the International Center on Housing Risk will release a briefing on its National Mortgage Risk Index and its State Mortgage Risk Indices, but HousingWire has a preview available now and the risk is growing.
The two indices provide a measure of how mortgage loans originated month by month would perform under severely stressed conditions.
International Center on Housing Risk co-directors Edward Pinto and Stephen Oliner will analyze the riskiness of single-family mortgage originations based on data through February 2014.
This month’s NMRI update shows 24% of all purchase loans have a debt-to-income ratio greater than the QM limit of 43%.
The Federal Housing Administration leads with 45% of purchase loans exceeding the 43% DTI limit. Both are new series highs.
Indices for Fannie/Freddie and FHA/RHS both hit new highs in February, while composite index ticked down as FHA’s share eased.
Risk levels remain higher than is conductive to long-run market stability, their report says, with no discernible impact from QM regulation.
HousingWire will cover the release in detail on Monday, but a preview of the presentation is available now. You can read or download the presentation here.
The International Center on Housing Risk is a part of the American Enterprise Institute.