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51 » VISIT US ONLINE @ DSNEWS.COM THE STEADY DECLINE OF DELINQUENCY Mortgage delinquencies fell by 0.9% year- over-year, according to the Loan Performance Insights Report from CoreLogic. By measuring delinquency as well as transition rates across all stages, CoreLogic's report indicates the overall strength of the housing market. Employment increased by 196,000 in March, according to the most recent U.S. Bureau of Labor Statistics Employment Situation Summary, which Frank Nothaft, CoreLogic Chief Economist cites as one reason for the increased loan performance. "Income growth, home appreciation, and sound underwriting combined have pushed delinquency rates to their lowest level in 20 years," said Frank Nothaft, CoreLogic Chief Economist. "e low delinquency rates on home mortgages are a contrast to the rising delinquency rates on consumer credit. While home mortgage delinquency rates are at, or are near, their lowest levels in two decades, delinquency rates for auto and student loans are higher now than they were during the early and mid-2000s." According to the report, the overall delinquency rate has fallen on a year-over- year basis for the preceding 13 consecutive months, although, the largest gains in delinquencies were seen in areas affected by natural disasters, notably the Southeast. CoreLogic noted that five Southeastern metros impacted by natural disasters also saw the biggest gains in delinquencies, including Panama City, Florida; Albany Georgia, and three North Carolina metros: Jacksonville, Wilmington, and New Bern. Still, overall delinquency rates continue to decline. e foreclosure inventory fell by 0.2% year-over-year as of January 2019, down to 0.4%. "As the economic expansion continues to create jobs and low mortgage rates support home buying this spring, delinquency rates are likely to trend lower during the coming year," said Frank Martell, President and CEO of CoreLogic. "e decline in delinquency rates has occurred in nearly all parts of the nation." Serious delinquency, or 90 days or more past due including loans in foreclosure, fell nationwide, except in one state: North Dakota, which remained unchanged. By metro, 13 areas saw increases in serious delinquency, while 14 remained the same, and all remaining metro areas decreased. THE CLIMB OF GINNIE MAE'S MBS BALANCE e issuance of Ginnie Mae's mortgage- backed securities (MBS) totaled $27.3 billion in March 2019. Its total outstanding principal balance also continued to climb, increasing to $2.05 trillion compared with $1.9 trillion in March 2018. However, quarter-over-quarter, the agency's issuance activity showed a slight decline. According to Ginnie Mae's issuance summary, approximately $98.3 billion MBS were issued in Q1 2019, a slight decline from $111.3 billion issued in Q 4 2018. A breakdown of its March issuance included $26.452 billion of Ginnie Mae II MBS and $879 million of Ginnie Mae I MBS, which included $782 million of loans for multifamily housing. While the Ginnie Mae I MBS are modified pass-through MBS on which registered holders receive separate principal and interest payments on each of their certificates, Ginnie Mae II MBS are modified pass-through MBS for which registered holders receive an aggregate principal and interest payment from a central paying agent. Ginnie Mae I securities can include single-family, multifamily, manufactured home, and project construction loans. As an agency that guarantees payments of more than $2 trillion on MBS, Ginnie Mae recently announced that it is also looking at advancing proposals that would require nonbank mortgage lenders to compile documents which dictate how to keep their operations running if they get into trouble, according to an article in the Financial Times that cited comments from Maren Kasper, Acting President, Ginnie Mae. Kasper told Financial Times that currently there was no federal safety and soundness regulator for nonbanks. "Today, the way the system is designed the taxpayer exposure sits with Ginnie Mae," she said giving reasons into why Ginnie Mae needed to protect them. e total MBS issued by Ginnie Mae had stood at $416 billion, slightly less than around $473 billion issued by the agency in 2017. of home mortgages were in some stage of delinquency in February 2019, down from 4.8% during the same period in 2018. Source: CoreLogic Loan Insights report STAT INSIGHT 4%

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