By Carrie Bay | 03/28/2012
With today's economic conditions, investors and lenders should expect defaults on mortgages currently being originated - both prime and nonprime - to be 28 percent higher than the average of loans originated in the 1990s, according to the latest UFA Mortgage Report by University Financial Associates. Currently, mortgage default risk is significantly lower than the worst vintages of this cycle - from 2006 to 2008. Loans made over that three-year period are 125 percent more likely to default than loans extended in the 1990s.
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By Carrie Bay | 12/12/2011
Lenders and investors should expect defaults on mortgage loans currently being originated to be 31 percent higher than for loans originated in the 1990s, according to a new report from University Financial Associates (UFA). As a point of comparison, UFA's index for the worst vintages of this cycle (2006-2008) carried a default risk of more than 125 percent above the 1990s baseline. UFA says with consumer balance sheets improving and mortgage rates at record lows, the stage is set for a recovery in the housing market.
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By Carrie Bay | 08/29/2011
The default risk associated with newly originated mortgages continues to improve, according to the analysts at University Financial Associates (UFA). The company's default risk index for the third quarter indicates that with today's economic conditions, lenders and investors should expect defaults on new loans to be 32 percent higher than loans from the 1990s. That's down from an elevated risk of 41 percent during the first part of this year. UFA says at this rate, "normalcy may not be far away" for default and prepayment indicators.
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