Non-QM Continues to Underperform; Homeownership Grows Among Lower-Income Households

Quick Insights

• Census Homeownership: Q3-2024 homeownership rates remained at 65.6%, with a surge among lower-income households.

• Overview: Impairments increased by 23 bps MoM, half attributed to hurricane impacts. Geographic region was the main driver of impairment differences in October and will continue to be the main differentiating factor for the rest of the year.

• Deal Age: The 2023 vintage underperformed, with a sharp rise in 60+ day delinquencies, especially in cash-out loans. In contrast, the 2022 vintage remains the best-performing across metrics.