Mortgage risk consumption and originations both increased from the year-ago quarter
Appetite for mortgage risk increased during the second quarter as both mortgage origination volumes and the mortgage default risk index increased year over year, according to VantageScore Solutions.
VantageScore is the developer of the VantageScore credit scoring models.
The first-quarter update to VantageScore’s Default Risk Index (DRI) revealed that the index for the mortgage category increased compared to 2017. The update also marked the highest DRI for the mortgage category since the second quarter of 2015. The DRI is a comparison of the total volume and weighted-average risk profile of quarterly originations.
Mortgage originations increased 2.03% compared to the same quarter last year, while the DRI increase 5.63% over the same period. The year-over-year increases in both mortgage origination volumes and the mortgage DRI indicate an increased appetite for risk, VantageScore said.
On a quarter-over-quarter basis, mortgage origination volumes declined 18.15% and the mortgage DRI increased 4.42%.
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