Housing Risk Watch, January 2014

Article Highlights

  • in December, nearly 1/2 of home purchase loans had down payments of 5% or less, and nearly 1/4 had DTI ratios over 43%.

    Tweet This

  • US homeownership rate is 65.3%, similar to in 1960.

    Tweet This

Subscribe to AEI's financial services emails
Articles and events on the financial services sector. Published approximately once a month.

First Name:
Last Name:
Email:
Zip Code:

Editor’s Note: Starting with this issue, FHA Watch has been renamed Housing Risk Watch. Housing Risk Watch will cover all facets of housing risk, with a primary focus on government-sponsored risk, including the FHA.

This Issue’s Highlight

Homeownership and the State of the Union

The homeownership rate, as reported by the US Census Bureau, stands today at 65.3 percent. When adjusted for the millions of homeowners who are seriously delinquent, the rate drops to 62.7 percent. This is virtually unchanged from the rate of 61.9 percent in 1960, notwithstanding a dramatic loosening of lending standards over the last 50-plus years. Once again, the National Association of Realtors and community advocacy groups call for a loosening of what they term “tight credit” conditions. Yet, in December, nearly one-half of all home purchase loans had down payments of 5 percent or less, and nearly one-quarter had debt-to-income ratios exceeding 43 percent.

This Month’s Features

Homeownership and the State of the Union
Creating a Straight, Broad Highway to Debt-Free Ownership

Spotlight on Mortgage Risk
Fannie Leads Freddie in Year-over-Year Increase in Risk

Spotlight on Best Price Execution
Delay of Planned GSE Guarantee Fee Increase Adds to Ginnie Agency Price Advantage over Fannie

Spotlight on FHA Insolvency
FHA’s Private GAAP-Estimated Net Worth Declines to Lowest Level in 10 Months

Spotlight on FHA Delinquency
Overall Rate Tops 15 Percent, Highest Level Since June 2013

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Edward J.
Pinto

What's new on AEI

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.