It’s been 16 years since the quality of residential loans originated has been as low as it was in the fourth-quarter 2016. But higher risk is likely ahead.

Based on the Housing Credit Index, single-family loans had less credit risk during the final quarter of last year than three months earlier and a year earlier.

In fact the index, which considers six credit risk attributes, indicates that fourth-quarter 2016 loans were among the highest-quality loans originated since 2001.


Source: Mortgage Daily