Items Tagged with 'DTI'

ARTICLES

  • From HW Magazine

    Outside the classroom

    Teaching Millennials that student loan debt doesn't have to delay the American Dream
    The conversation around student loan debt and its economic impact on Millennials, those born from 1980 to 1998, has some questioning whether the future of the American Dream is in jeopardy. The nation’s student loan debt has soared to $1.4 trillion, surpassing credit cards in becoming the largest source of personal debt outside a mortgage.
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  • Fannie Mae prepares for DU update after flood of high DTI mortgages in Q4

    Adjusts credit risk assessment to limit risk layering
    Fannie Mae is currently preparing to update its Desktop Underwriter to its newest version, 10.2, after seeing an increase in high debt-to-income mortgages in 2017's fourth quarter. The company announced that after assessing the profile of loans delivered since the DU 10.1 changes went into effect, it is fine-tuning DU’s risk assessment to limit risk layering.
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  • Executive Conversation: David Gansberg on managing risk under the new DTI ratios

    Arch MI's RateStar continuously responds to changing variables for flexible underwriting
    The expanded DTI requirement has made home ownership opportunities more available for many potential buyers, especially as it applies to eligible loans with down payments as low as 3%. The risk represented by these loans has also increased. Studies have shown that the risk of default for borrowers with DTI ratios between 45% and 50% is higher than for those with a median DTI level of 35%.
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  • MI companies creating new standard for over 45% DTI mortgages

    More companies prepare to raise standards
    More mortgage insurance companies continue to fight against mortgages with debt-to-income ratios of 45% to 50% as they prepare to raise their standards. Last week, HousingWire outlined plans from MGIC and Genworth to increase their standards on high DTI loans, but as it turns out, that was just the tip of the iceberg.
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  • Mortgage insurance companies push back against 50% DTI

    Increase credit score requirements
    Last year, the GSEs announced they were increasing their debt-to-income ratio to 50%, a move that mortgage insurance companies are starting to fight back against. "We are concerned with the recent increase of loans that have debt-to-income ratios exceeding 45%, particularly when combined with weaker credit profiles," one MI company explained.
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  • Countdown: the top 10 stories of the year (5,6)

    Here’s what our readers were most interested in
    We’re getting closer to the year’s top story, but first, let’s look at the ones that almost made it. While the year’s top 5th and 6th stories may have been popular reads, the stories they told struck controversy among the housing industry.
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  • CoreLogic: Mortgage lending just got riskier

    Market shifts to investor loans
    During the second quarter this year, the risk in mortgage lending inched up as the market shifted toward an increased share of investor loans. And while mortgage risk remains at the 2001 to 2003 benchmark level, it has been increasing since 2016, and if the trend continues, could soon surpass these levels.
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  • Student debt costs housing $83B a year

    Analysts: Skyrocketing higher ed costs create enormous drag
    For more than a year HousingWire has been reporting on the link between high levels of student loan debt and the struggling housing recovery. Now there is a real value. And it's staggering.
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