Wednesday, August 06, 2008

Fannie and Freddie: High LTV, Low FICO by Year

by Calculated Risk on 8/06/2008 04:03:00 PM

UPDATE: Newer table showing round trip on lending standards.

Brian has sent me this table (from UBS) summarizing the percentage of high LTV (loan to value), and low FICO loans made by Fannie and Freddie each year.

Fannie and Freddie Lending Standards Click on table for larger image in new window.

UBS commented:

"We expect the delinquencies to rise considerably further, given the deterioration of the GSE book of business in 2007. As the non-Agency markets shut down in 2007, conforming product that had risk layering came into Agency space.
...
No matter what box one looks at, the results are the same - in the first 8 months of 2007, the % of Freddie and Fannie issuance with risky characteristics rose considerably. ... It is well documented that increased risk layering causes losses to multiply."