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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 Black Knight's Mortgage Monitor, the monthly payment required to purchase the average-priced house with 20% down is $1,173. Ellie Mae's Millennial Tracker indicates that millennial homeowners have taken advantage of low interest rates to jump on the opportunity to refinance, with the percentage of refinance loans increasing 4% month-over-month. FANNIE, FREDDIE, AND BORROWER DEBT INSIDE THE JOURNAL // ON THE WEB // THE APP SPECTRUM // MOVERS & SHAKERS TAKE A LOOK INSIDE THE NUMBERS D A T A B I T S Source: "Freddie Mac: These 20 Cities Are Hit Hardest by High Rents" 10 METROS WITH HIGHEST RENT BURDEN 10 METROS WITH LOWEST RENT BURDEN 1 RALEIGH, NORTH CAROLINA 2 KANSAS CITY, MISSOURI 3 PITTSBURGH, PENNSYLVANIA 4 OKLAHOMA CITY, OKLAHOMA 5 LOUISVILLE, KENTUCKY 6 CINCINNATI, OHIO 7 COLUMBUS, OHIO 8 NASHVILLE, TENNESSEE 9 SAN ANTONIO, TEXAS 10 ST. LOUIS, MISSOURI 1 MIAMI, FLORIDA 2 LOS ANGELES, CALIFORNIA 3 RIVERSIDE, CALIFORNIA 4 SAN DIEGO, CALIFORNIA 5 NEW ORLEANS, LOUISIANA 6 ORLANDO, FLORIDA 7 SACRAMENTO, CALIFORNIA 8 ROCHESTER, NEW YORK 9 VIRGINIA BEACH, VIRGINIA 10 NEW YORK, NEW YORK Fannie Mae and Freddie Mac have been increasingly backing loans to borrowers with heavy debt loads, according to the Wall Street Journal, which reports that 30% of loans packaged into bonds by the government- sponsored enterprises (GSEs) within the last year were to homebuyers whose total debt payments amounted to more than 43% of their incomes. is share has doubled since 2015. "Some say cheap, federally backed financing has made credit available for millions of borrowers who otherwise might not have had a shot at homeownership," WSJ's Ben Eisen said. "Others say that more-indebted borrowers are riskier and that their purchases may be accentuating a rise in home prices that in many areas has outstripped median incomes." One possible factor driving the increase is the qualified mortgage patch (QM patch). e Urban Institute estimates that an additional 3.3 million mortgages were originated between 2014 and 2018 because of the patch. Additionally, though the GSEs have tightened some standards, Fannie announced around two years ago that it would more freely guarantee mortgages with debt-to-income ratios of between 45% and 50%. Federal Housing Finance Agency (FHFA) Director Mark Calabria has announced that he plans to address the issue while working to move Fannie and Freddie out of conservatorship. Patch usage has grown in the last few years, and according to Calabria, changing the patch would be a key tool to shrink Fannie and Freddie without a full overhaul, though he states that he does not intend to do away with it entirely. PAGE 26 Deputy Chief Economist and VP, Fannie Mae ASK THE ECONOMIST WITH Mark Palim RANKING METRO RANKING METRO According to the Wall Street Journal, 30% of loans packaged into bonds by the government- sponsored enterprises (GSEs) within the last year were to homebuyers whose total debt payments amounted to more than 43% of their incomes. This share has doubled since 2015.

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