There clearly was a clear, positive matchmaking amongst the DTI bins and you can three-12 months standard prices
Getting ease and you may easy interpretation, i split up this new distribution from DTI rates into the three bins: DTIs lower than otherwise equal to thirty six, DTIs between thirty six and you may 43, and you will DTIs more than or comparable to 43. I contemplate five collectively exclusive loan vintages: 200003 loan originations, which match brand new pre-growth several months; 200407 originations, which include the newest growth months; 2008eleven originations, including the fresh overall economy period; and you may 201215 originations, which correspond to this new healing period.
The partnership is far more obvious towards boom and you may crisis symptoms, which have been characterized by notably high non-payments compared with the fresh pre-increase and recovery symptoms. Read more “There clearly was a clear, positive matchmaking amongst the DTI bins and you can three-12 months standard prices”
