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(The delinquency rate is the ratio of borrowers who are at least 60 days past due on their payments. The mortgage delinquency rate peaked at the end of 2009 at 6.89 percent).
Credit card delinquency rates — the ratio of borrowers who are at least 90 days behind on one or more cards — are expected to remain low, even though they may rise to 0.87 percent at the end of next year from 0.83 percent now.
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Nationally, the ratio of borrower delinquencies on at least one bankcard account is up 5.8% year-over-year.
The key lies in debt to income ratios of prospective borrowers.
A study of 600 MFIs indicated that MFIs' willingness to offer microinsurance is positively correlated to a rise in the financial expense ratio, loan repayments in arrears, years of operation, number of borrowers, woman borrower ratio, life insurance penetration ratio, and family size.
And their ratio of delinquent loans to total debt outstanding is half that of borrowers generally, she said.
New York fared best, with just 4.7% of borrowers with negative equity and an average 48.0% loan-to-value ratio.
And if Wells buys a loan from a smaller bank or broker, it must have a loan-to-value ratio of 105 percent or less, meaning the borrower cannot be more than 5 percent underwater.
Figures within the survey also showed that the average Loan to Value LTVV) ratio in Scotland among first time buyers dropped to 86% in May, but remained more resilient among other types of borrowers.
Pricing in repo markets increasingly reflect the geographic origins of borrowers and of borrowers' collateral.
That $36 billion will come out of borrowers' hides, of course.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com