For all the uproar that surrounded Fannie Mae and Freddie Mac introducing loan programs that allowed buyers to put down as little as 3% around this time last year, not many buyers are actually taking advantage of the low down payment loans, according to a new report from Black Knight Financial Services (BKFS).
In Dec. 2014, Fannie and Freddie officially rolled out 97% loan-to-value products. At the time, officials from the Federal Housing Finance Agency said that they expected the low down payment loans to represent a small portion of the government-sponsored enterprises’ business moving forward.
Black Knight’s latest Mortgage Monitor report, released Monday, shows just how small that portion actually is.
According to Black Knight’s report, high-LTV loans (loans with LTV’s above 95%) from the GSEs have accounted for less than 3% of the total number of high-LTV loans originated in 2015.
According to Black Knight’s report, loans insured by the FHA or the VA still account for more than 90% of the total number of high-LTV loan originations – a figure that has held steady above 90% since 2009.
And high-LTV loans account for 77% of the total number of FHA or VA loan originations as well.
According to Black Knight Data & Analytics Senior Vice President Ben Graboske, those figures were far different before the housing crisis.
“Back in 2007, the GSEs made up over 45% of high-LTV purchase originations, while FHA/VA lending made up roughly one-third,” Graboske said.