Bubble Trouble? Fannie Mae And Freddie Mac LTVs Higher Than During The Catastrophic Housing Bubble

Fannie Mae and Freddie Mac, the mortgage giants in seemingly perpertual conversatorship with the FHFA, have mortgage loans that are even more risky in terms of loan-to-value (LTV) ratios than during the catastrophic housing bubble of the 2000s.

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The “good” news is that the average FICO (credit) score for Fannie and Freddie loan purchases is above those from the housing bubble. But the trend is worriesome.

ficoughdd

In terms of Debt-to-income ratios (or Detes as Tom Haverford would say), the Detes are below housing bubble levels, but have been rising since the end of 2008.

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These figures are from data taken from Fannie Mae’s and Freddie Mac’s online data. “Processed in Python.”  With thanks to Hakeem Azoor.

I nominate Tom Haverford for FHFA Director!

tomjhaverford

One thought on “Bubble Trouble? Fannie Mae And Freddie Mac LTVs Higher Than During The Catastrophic Housing Bubble

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