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» VISIT US ONLINE @ DSNEWS.COM 5 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff According to the Federal Housing Finance Agency's semiannual report, Fannie Mae and Freddie Mac sold 98,061 nonperforming loans with a total unpaid balance of $18.7 billion through June 30, 2018. Nearly three out of four American households believe that the nation is suffering from a housing affordability crisis, according to a survey conducted by the National Association of Home Builders. ANALYZING MORTGAGE DELINQUENCY PERFORMANCE INSIDE THE JOURNAL // ON THE WEB // THE APP SPECTRUM // MOVERS & SHAKERS TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S * Ranking out of the 50 most populous U.S. metros according to the following factors: average credit utilization, as a percentage; average monthly rent-to-income ratio, as a percentage; regional prices on goods and services; local unemployment rate; and state's scoring on debt-friendly laws and policies. Source: LendingTree 10 BEST PLACES TO PAY DOWN DEBT* 10 WORST PLACES TO PAY DOWN DEBT* 1 RIVERSIDE, CALIFORNIA 31.8 2 DETROIT 40.8 3 LOS ANGELES 42.3 4 NEW YORK 42.7 5 MIAMI 43.6 6 SAN DIEGO 45.2 7 VIRGINIA BEACH, VIRGINIA 49.6 8 PHILADELPHIA 50.5 9 LAS VEGAS 51.5 10 BALTIMORE 52.7 1 CINCINNATI 77.2 2 MILWAUKEE 75.6 3 MINNEAPOLIS 75.5 4 NASHVILLE, TENNESSEE 75.0 5 OKLAHOMA CITY 73.8 6 RALEIGH, NORTH CAROLINA 73.8 7 KANSAS CITY, MISSOURI 73.7 8 AUSTIN, TEXAS 73.5 9 BUFFALO, NEW YORK 71.5 10 COLUMBUS, OHIO 70.7 Declining unemployment rates and rising home prices have helped reduce delinquency rates, according to Archana Pradhan, Senior Professional, Economist at CoreLogic. In a January blog titled "Mortgage Delinquency Rates for All Loan Types Continue to Fall," Pradhan indicated that the serious delinquency rate for September 2018 was 1.5 percent, representing a 0.4 percentage point decline compared with September 2017. e blog based on information from the CoreLogic Performance Index revealed that the serious delinquency rates for Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), and conventional loans were 3.7, 1.9 and 1.1 percent as of September 2018—representing an 11-year low. CoreLogic data shows the serious delinquency rate for FHA loans is more than three times higher than the serious delinquency rate for conventional loans, partly because of the rise in FHA to conventional refinancing since 2013, Pradhan said. FHA to conventional refinances accounted for about 10 percent of all refinances in 2017 compared to 2 percent in 2012. Pradhan pointed out that a closer look reveals that today's delinquency rates are influenced by older loans, wherein about 67 percent of the conventional loans that were seriously delinquent in September 2018 were originated between 2003 and 2009 compared to just 23 percent of seriously delinquent conventional loans originated between 2010 and 2018. About 48 percent of the FHA loans and 69 percent of VA loans that were seriously delinquent were originated between 2010 and 2018, the blog indicated. According to CoreLogic, the delinquency rates were much higher for all loan types originated between 2006 and 2008. An improvement in all types of loans recorded gradual improvement in delinquency rates were much higher for all loan types originated between 2006 and 2008. Performance of all types of loans started to improve gradually beginning with the 2009 vintage as the underwriting standards tightened and the economic recovery began mid-2009. Another key finding of the report was that loans originated in 2015 and 2016 have performed the best, with the lowest 15-month delinquency rate in a decade. e affordable loans originated in the past three years have a significantly lower delinquency rate than the FHA and VA loans. In fact, the serious delinquency rate for affordable housing loans is only a little bit higher than that of conventional loans. "Loans originated in 2015 and 2016 have performed the best, with the lowest 15-month delinquency rate in a decade." PAGE 18 Managing Attorney of Bankruptcy Operations, Padgett Law Group COUNSEL'S CORNER WITH Keena Newmark RANKING METRO FINAL SCORE RANKING METRO FINAL SCORE