Mortgage equipment after creditworthiness, increase in delinquencies, enforcement increases

The NY Fed published the Quarterly quarterly in the first quarter of household debts and loans this morning. Here are some diagrams from the report.

The first diagram shows mortgage equipment after creditworthiness (this includes both purchase and refinancing). Check out the difference in the credit values ​​in recent times compared to the bladder years (2003 to 2006).. Recently there has been almost no origin for borrowers with credit scores under 620 and only a few under 660. An important majority of the latest origin was for borrowers with loan score over 760.

Solid underwriting is an important reason why I have argued Do not compare the current apartment boom with the bladder and the bust.

From the NY FED:

The volume of the mortgage armor, which was measured as the appearance of new mortgages in relation to consumer credit reports and including refinancing and purchase of original uses, easily rose with $ 426 billion that arose in the second quarter. … Heus borders of the equity lines (Heloc) continued to rise and recorded 3 billion US dollars. …

The credit quality of new loans was mixed. … there was a slight deterioration of the mortgages, since the mean value of new mortgage loans decreased by 2 points and the tenth percentile value decreased by 5 points.

Here is another way to look at the loan scores after original over time. During the bladder there was a significant decline in credit scores.

One possible problem is to increase the transition rates from electricity to 30-60 days late. This has increased steadily since the increase in mortgage interests and is now back to the pre-pandemic level.

Further increases would be somewhat worrying.

And here is the transition to serious illnesses. Most short -term delinquencies change back to electricity, but it also has to increase the transitions to serious delinquencies.

The transition rate for serious delinquency is generally increasing and the enforcement is close to the pre-Pandemic level. The Q1 increase is likely to be due to the end of the VA compulsory enforcement moratorium.

There is much more in the report.