Current Credit Standards Tougher Than They Need to Be

By Jann Swanson

Posted To: MND NewsWire

What is an acceptable rate of mortgage delinquency? A CoreLogic economist is using current delinquency rates to argue that delinquencies will always be with us and that today’s underwriting standards are tougher than they need be. Molly Boesel, a senior economist with the company says the serious delinquency rate (SDQ) in February 2010, near the height of the housing crisis, was 8.6 percent. Recent figures from CoreLogic show 1.6 million SDQ mortgages – those 90 days or more past due or in foreclosure, a rate of 4.2 percent. The overall SDQ rate is on the decline and loans originated in the last four years and especially in contrast with their immediate pre-crisis predecessors are among the most pristine loans made in the last 15 years. Perhaps, she says, this indicates that credit standards…(read more)

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