THANK YOU for this information, John. Very eye-opening. I was thinking about correlating FHA defaults with student loans recently, so this is very timely!
This is extremely interesting. Compounding the problem of student loan repayments is that many of the fha borrowers in your sample have also seen their annual property insurance increase significantly since origination. When we look at the financial position of borrowers who will be impacted by student loans, it’s made all the more worse by their escrow adjustments. I would love to see ICE put out a study on borrower DTI at time of origination vs escrow adjustments years 1-5. They have the origination and servicing platform to run the analysis.
THANK YOU for this information, John. Very eye-opening. I was thinking about correlating FHA defaults with student loans recently, so this is very timely!
This is extremely interesting. Compounding the problem of student loan repayments is that many of the fha borrowers in your sample have also seen their annual property insurance increase significantly since origination. When we look at the financial position of borrowers who will be impacted by student loans, it’s made all the more worse by their escrow adjustments. I would love to see ICE put out a study on borrower DTI at time of origination vs escrow adjustments years 1-5. They have the origination and servicing platform to run the analysis.
I can ask. Not sure if they have yoy dti data
Great post, thanks for sharing!
So If I haven't messed up with number of zeroes - that's about 0,7% GDP from FHA alone? Not including any second order effects?
Not insignificant at all