Legal Seminar, Chicago, IL

CREDIT BOX AGENCY NONBANK CREDIT BOX The median LTVs for nonbank and bank originations are comparable, while the median DTI for nonbank loans is higher than for bank loans, indicating that nonbanks are more accommodating in both this and the FICO dimension. Since early 2017, there has been a substantial increase in DTIs, which has partially reversed in the past fewmonths. This is true for both Ginnie Mae and the GSEs, for banks and nonbanks. As interest rates increased, DTIs rose, because borrower payments were driven up relative to incomes. With the fall in interest rates in 2019, DTIs decreased slightly.

GSE LTV: Bank vs. Nonbank

Ginnie Mae LTV: Bank vs. Nonbank

All Median LTV

Bank Median LTV

All Median LTV

Bank Median LTV

LTV

Nonbank Median LTV

LTV

Nonbank Median LTV

90 91 92 93 94 95 96 97 98 99 100

66 68 70 72 74 76 78 80 82 84 86 88 90

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

May-14 Sources : eMBS and Urban Institute. May-15

May-16

May-17

May-18

May-19

May-14 Sources : eMBS and Urban Institute. May-15

May-16

May-17

May-18

May-19

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

Ginnie Mae DTI: Bank vs. Nonbank

All Median DTI

Bank Median DTI

Nonbank Median DTI

DTI

DTI

46

44

44

42

42

40

40

38

38

36

36

34

34

32

32

30

30

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Jan-15

Jan-16

Jan-17

Jan-18

Jan-19

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

May-14

May-15

May-16

May-17

May-18

May-19

May-14

May-15

May-16

May-17

May-18

May-19

Sources : eMBS and Urban Institute.

Sources : eMBS and Urban Institute.

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