AEI’s National Mortgage Risk Index declined slightly from April, falling to 11.87% in May.

About 181,000 loans were added in May, bringing total in the NMRI to 3.54 million.

American Enterprise Institute’s Ed Pinto says that there has been little discernible volume impact from QM regulation.

Nearly a quarter of loans still have total DTI > 43%, unchanged from levels in late 2013.

The survey also found that the Fair Housing Administration is not compensating for riskiness of high DTI loans, and that the government-sponsored enterprises, Fannie Mae and Freddie Mac, are compensating only to a limited extent.

Click below to enlarge the chart.

“The recent softness in mortgage lending not due to tight standards but to somewhat higher interest rates, higher home prices, lingering impact of the financial crisis, and sluggish economic recovery,” the preview of the report says. The full report will be released Monday morning.

The survey also found that subprime lending by FHA issuers continue to grow in response to government calls for expanding the FHA credit box, which risks fueling home price volatility, particularly in lower income and minority areas. 

Most Popular Articles

3 housing trends to watch for in 2020

The year 2020 is now upon us, and as we say goodbye to 2019, we welcome a new decade and all the twists and turns it will bring for the housing industry.

Dec 02, 2019 By

Latest Articles

When it comes to their home, Millennials are picky

According to a new data set from the National Association of Home Builders, Millennials care just as much (if not more) about they want in a house rather than what they need.

Dec 05, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please