Black Knight has documented an extraordinary story in yesterday’s release of the November Housing Monitor. (Black Knight does excellent work; don’t be misled by the age of the data — reliable housing data is notoriously slow to arrive).
- The number of current foreclosures is the best indicator of the quality of underwriting when the loans were made.
- November 2015 saw the lowest total foreclosure starts since good data began in 2005 -- that’s news.
- We get a result like this only from over-tightening. If the rulebook gets too tight, it also gets to diminishing returns, denying credit to those worth the risk.