Spinning Federal Mortgage Fees - WSJ Opinion

The American Enterprise Institute looked at default rates of Fannie/Freddie owner-occupied 30-year fixed rate purchase loans acquired in 2006-2007 and found that among borrowers with credit scores between 720 and 769 and 20% down payments, the default rate was between 4.2% and 8.8%. Among borrowers with less than 4% down payments and credit scores between 620 and 639, the default rate was between 39.3% and 56.2%.