re: #681 torrentprime
I found this from an old bookmark…

Other “sightings” of CRA loan performance include:

- Bank of America, one of the nation’s largest CRA lenders, noted on its Q3:08 earnings call with equity analysts that while its CRA loans constituted 7% or $18 billion of its owned residential mortgage portfolio, they represented 29% of net losses, with an annualized loss rate of 1.26%.

Fannie’s traditionally underwritten loans have a serious delinquency rate of 1.8%.
How are Fannie’s $650 billion in loans with the above high risk characteristics doing?

- Down payment equal to or less than 5% - 11.56% serious delinquency rate
- FICO < 620 - 16.08% serious delinquency rate
- FICO >= 620 and < 660 - 11.32% serious delinquency rate

On average this rate is 7x the rate on traditionally underwritten loans. This result should come as no surprise since Freddie Mac published its estimated default rates by loan-to-value (LTV) in the late 1990s and reported that its 95% LTV loans had about 6 times the default rate of 80% loans.