According to recent findings of the International Center on Housing Risk, the housing loans climate is getting more unfavorable and riskier. The Center’s indices measure how mortgage loans originated at certain points in time will be dealt with under stressful conditions. The results show that lasting market stability apparently has not been reached yet.
About 24% of purchase loans have a debt-to-income ratio exceeding the 43% QM limit. This is especially true for the Federal Housing Administration, which has 45% of loans that don’t meet the limits.
All housing loans under the NMRI have a down payment of less than 5%. Almost 25% have a debt-to-income ratio above the QM limit.