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Unique Risk Factors for Non-traditional Mortgages
Thursday, December 3, 2015
When it comes to mortgage risk there is a lot of good news. Sam
Khater, CoreLogic's Deputy Chief Economist says in the current issue of the
company's MarketPulse that underwriting
remains tight compared to the early 2000s and serious delinquencies among
recent originations are at a 20 year low.
Risk factors such as negative equity and home prices are moving in the
appropriate directions and risk as reflected in foreclosure starts and
distressed sales have decreased. Cash
sales remain elevated, lowering overall leverage and the economy continues to
improve and the labor market to tighten.
That said, Khater warns that there are some worrisome signs -
red flags for risk.
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