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Tag Archives: American Enterprise Institute

FHA Unveils Blueprint to Loosen Credit Access, Lower Risk

As part of its efforts to expand credit access to more borrowers, the Federal Housing Administration has introduced its "Blueprint for Access," which includes a new counseling program for borrowers using FHA-insured financing. The plan has its critics, including the American Enterprise Institute's Edward Pinto, who argues that FHA "has not stood for sustainable homeownership for at least five decades."

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Loan Risk Index Rises to New High in Early April Data

The American Enterprise Institute (AEI) put out a “flash release” of its National Mortgage Risk Index (NMRI), a measure of the likelihood of purchase loan defaults under stressful economic conditions. According to the group, the index climbed last month to 11.89, indicating nearly 12 percent of loans would be at risk of default in the event of another downturn. That figure is up from a reading of 11.5 percent in March and represents a series high for the index.

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Report: Loan Risk Remains High; QM Having ‘No Discernible Impact’

The American Enterprise Institute’s (AEI) International Center on Housing Risk released this week its latest National Mortgage Risk Index (NMRI), a measure of likely loan default rates in the event of another economic crisis. For its March data, the group calculated that under stress, 11.5 percent of recent home purchase mortgages would default, just down from 11.6 percent in February.

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Mortgage Risk Down Slightly; Remains Nearly Double Sustainable Levels

The American Enterprise Institute's National Mortgage Risk Index (NMRI), a measure of loans’ default risk under stressful conditions, retreated to 11.6 percent last month from January’s reading of 11.8 percent. To gauge where February’s index lies historically, 1990 vintage loans would have an estimated index value of 6 percent, while riskier 2007 loans would be up at 19 percent.

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Mortgage Risk Continues to Climb

Last month’s implementation of the Consumer Financial Protection Bureau’s (CFPB) qualified mortgage (QM) guidelines did little to stem the rise of mortgage risk across the nation, according to the latest from the American Enterprise Institute (AEI). The group’s National Mortgage Risk Index (NMRI), a measure of loan performance under stressful economic conditions, increased to a reading of 11.8 percent in January.

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Housing Experts Speak at Hearing on Finance Reform

Three industry analysts gave testimony before a Senate committee on housing finance reform Tuesday. While all three experts expressed support for more private capital and less government involvement, the proposed degrees of government support varied. Currently, about 90 percent of single-family mortgages have some form of government backing.

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AEI Report Calls Out FHA’s ‘Abusive Lending Practices’

A study from the American Enterprise Institute (AEI) asserts the Federal Housing Administration (FHA) is inadvertently setting the country up for another housing collapse. In a report titled How the FHA Hurts Working-Class Families and Communities, AEI resident fellow and former Fannie Mae EVP Edward Pinto says an analysis of FHA's books for fiscal years 2009 and 2010 show the agency's "lending practices are inconsistent with its mission and represent a disservice to American working-class families and communities."

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Experts: GSE Reform Unlikely Until After 2012 Election

Fannie Mae and Freddie Mac entered federal conservatorship in 2008, as lawmakers and presidents stepped in to stymie a freefall for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest mortgage companies, just as words like subprime and systemically important institutions gained traction for the public. Four years and roughly $180 billion in taxpayer funds later, old hands, regulators, and freshman lawmakers alike struggle with a vexing riddle. How can a system polarized by politics safely shrink companies responsible for more than $11 trillion in mortgages without blowing the recovery ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and what will it mean for mortgage finance?

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