, 5 tweets, 3 min read Read on Twitter
While the attention is on Fannie and Freddie, Ginnie Mae has slowly become a place for risky lending:
- is now larger than Fannie
- basically all loans with 3% down
- debt-to-income rising; typical loan is at or above the "cap" of 43
- credit scores pretty low
Most of these loans are originated by "nonbanks" that specialize in lending-to-securitize
Though credit scores are up (and who knows if these things *mean* the same thing in different years); mortgage leverage is about the same or higher as it was pre-crisis. Typical borrower puts 5% down, makes mortgage payments that are 40% of income.
This is not systemically risky, since most of this mortgage default risk is borne by the FHA and the Veterans Administration. Prepayment risk borne by the security holders.

But possible source of risk for Fed Gov
Data source is the excellent @urbaninstitute's monthly chartbook.

urban.org/sites/default/…
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