Foreclosure starts drop to 10-year low

  • 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.

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).