Legal Seminar, Chicago, IL

CREDIT BOX AGENCY NONBANK CREDIT BOX Nonbank originators have played a key role in opening up access to credit. Median GSE and Ginnie Mae FICOs for nonbank originations are lower than their bank counterparts, with a larger differential in the Ginnie Mae market. Within the GSE space, bank FICOs have declined slightly since 2014 and nonbank FICOs are roughly constant. By contrast, for Ginnie Mae originations from 2014-2018, FICO scores for bank originations rose while nonbank FICOs fell, reflecting a sharp cut-back in FHA lending by many banks. As was pointed out on page 11, banks now comprise only about 14 percent of Ginnie Mae originations. However, since late 2018, many banks have relaxed their overlays, and bank FICOs have drifted down; they remain higher than their non-bank counterparts.

Agency FICO: Bank vs. Nonbank

All Median FICO

Bank Median FICO

Nonbank Median FICO

FICO

770

760

751

750

740

730

729

720

710

712

700

690

680

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Nov-13

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

May-14

May-15

May-16

May-17

May-18

May-19

Sources : eMBS and Urban Institute.

Ginnie Mae FICO: Bank vs. Nonbank

All Median FICO Bank Median FICO Nonbank Median FICO GSE FICO: Bank vs. Nonbank

All Median FICO Bank Median FICO Nonbank Median FICO

FICO

FICO

780

780

760

760

756 758 754

740

740

720

720

700

700

690 674 672

680

680

660

660

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

May-14

May-15

May-16

May-17

May-18

May-19

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

May-14

May-15

May-16

May-17

May-18

May-19

Sources : eMBS and Urban Institute.

Sources : eMBS and Urban Institute.

17