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Volume 8, Issue 1, 2008   Federal Reserve Bank of Dallas

Mortgage Data Help Paint Foreclosure Picture

As national and regional foreclosure and delinquency rates escalate, community organizations, counseling agencies and policymakers need to obtain good-quality data to target at-risk borrowers and neighborhoods, understand foreclosure patterns and trends in local areas, and use limited resources effectively to mitigate foreclosure losses to individuals and communities.

Mortgage performance data typically are not publicly available and are usually expensive. The Federal Reserve System has aggregated loan-level information from the First American CoreLogic, LoanPerformance asset-backed securities database. The Federal Reserve created dynamic maps and made them available to the public beginning April 1, 2008.

The maps illustrate the conditions of securitized, owner-occupied, subprime and Alt-A mortgage loans across the United States. The maps are maintained by the Federal Reserve Bank of New York and can be found at www.newyorkfed.org/mortgagemapsoff-site link.

Twelve variables on loan density, delinquency status, risk factors and imminent default signals are displayed in the maps. Definitions of the variables and explanation of the data sources are available in the website's technical appendix: www.newyorkfed.org/regional/techappendix_map.htmloff-site link.

More detailed statistics can be found in the accompanying data tables at www.newyorkfed.org/regional/subprime.htmloff-site link. The data include aggregated information in the following categories:

Property characteristics:

  • Location
  • Occupancy status
  • Foreclosure status
  • REO status

Underwriting characteristics:

  • Average borrower's FICO score at origination
  • Number of no- or low-documentation loans at origination
  • Average and median of combined loan-to-value (LTV) ratio at origination
  • Loan purpose (purchase/refinance)

Loan characteristics:

  • Average current interest rate and balance
  • Origination year
  • Loan type (ARM/fixed/interest only)
  • Prepayment penalty
  • Loans with a second lien at origination
  • Borrower delinquency status
  • Average margin, initial and current interest rate for ARM loans
  • Payment reset distribution for ARM loans

Universes used to calculate the shares or densities include the number of housing units (based on the 2000 census), the number of owner-occupied loans and ARM loans in the LoanPerformance database. More appropriate universes, such as the total number of mortgage loans in the geographic area, are not available. The database does not include the comparison data on loans securitized by government-sponsored enterprises (GSEs) or prime mortgages. It covers approximately half of all subprime and 90 percent of all Alt-A mortgage loans in the United States.

For loan performance data in the Eleventh District, contact the Community Affairs office of the Federal Reserve Bank of Dallas.

Texas Subprime Picture at a Glance

Based on the LoanPerformance data of December 2007, Texas ranks third in the nation in number of owner-occupied, securitized, subprime loans and seventh in foreclosure/real-estate-owned (REO) properties. Fourteen Texas counties have more than 3,000 owner-occupied, securitized, subprime loans. The following tables summarize a number of key characteristics according to their ranks among the 14 counties:

(A) Owner-Occupied, Securitized, Subprime Loans

Harris
32,800
 
Dallas
31,900
 
Tarrant
20,400
 
Bexar
14,900
 
Hidalgo
7,700
 
El Paso
7,500
 
Denton
6,200
 
Travis
5,800
 
Collin
5,700
 
Cameron
4,100
 
Fort Bend
3,500
 
Galveston
3,400
 
Nueces
3,400
 
Montgomery
3,000
 

Number of Foreclosures/REO in (A)

Dallas
2,900
 
Harris
2,400
 
Tarrant
1,500
 
Bexar
750
 
Denton
500
 
Hidalgo
500
 
Collin
400
 
Cameron
300
 
Fort Bend
200
 
Galveston
200
 
Montgomery
200
 
Travis
200
 
El Paso
100
 
Nueces
100
 

ARMs as Percent of (A)

Collin
57.9
 
Denton
54.8
 
Dallas
53.6
 
Tarrant
52.5
 
Fort Bend
51.4
 
Montgomery
50.0
 
Harris
48.5
 
Galveston
47.0
 
Travis
43.1
 
Hidalgo
42.9
 
Cameron
41.5
 
Nueces
41.2
 
Bexar
40.3
 
El Paso
40.0
 

High LTV and FICO <620 as a Percent of Total ARMs in (A)

Nueces
35.7
 
Tarrant
29.0
 
Fort Bend
27.8
 
Collin
27.3
 
Harris
27.0
 
Bexar
26.7
 
Montgomery
26.7
 
Denton
26.4
 
Dallas
26.3
 
Galveston
25.0
 
Hidalgo
24.2
 
El Paso
23.3
 
Cameron
17.7
 
Travis
16.0
 

ARM Resets in 2008 in (A)

Dallas
5,800
 
Harris
5,500
 
Tarrant
3,900
 
Bexar
2,100
 
Denton
1,300
 
Collin
1,200
 
El Paso
1,200
 
Hidalgo
1,200
 
Travis
700
 
Cameron
600
 
Fort Bend
600
 
Galveston
600
 
Montgomery
600
 
Nueces
500
 

SOURCE: Federal Reserve estimates based on data from First American CoreLogic, LoanPerformance asset-backed securities database.

Other Data on Mortgage Foreclosure


The National Delinquency Survey (NDS), which the Mortgage Bankers Association (MBA) has conducted since 1953, covers 80–85% of all first-lien residential mortgage loans outstanding in the United States. Delinquency and foreclosure measures are broken out into various loan types (prime, subprime, VA and FHA) and fixed- and adjustable-rate products.

While the securitized nonprime loans in the LoanPerformance data are categorized into subprime or Alt-A based on the credit risks of the securities, the MBA divides the conventional sample between prime and subprime based on whether the servicer handles primarily prime or subprime loans.

The MBA data provide quarterly reports on national, regional and state mortgage delinquency and foreclosure rates and total number of loans serviced. The MBA data can be purchased at www.mbaa.org/ResearchandForecasts/ProductsandSurveys/
NationalDelinquencySurvey.htm

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e-Perspectives, Volume 8, Issue 1, 2008

Federal Reserve Bank of Dallas Off-site page
Community Development Office Send an e-mail
P.O. Box 655906, Dallas, Texas 75265-5906
214-922-5377
Gloria Vasquez Brown Send an e-mail
Vice President
    Alfreda B. Norman Send an e-mail
Assistant Vice President and Community Development Officer
Jackie Hoyer Send an e-mail
Houston Branch
Senior Community Development Advisor
    Julie Gunter Send an e-mail
Senior Community Development Advisor
Wenhua Di Send an e-mail
Community Development Economist
    Elizabeth Sobel Send an e-mail
Community Development Specialist
Roy Lopez Send an e-mail
Community Development Specialist
     
The views expressed are the authors' and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. Articles may be reprinted on the condition that the source is credited and a copy is provided to the Community Development Office.
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