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Home » Store » Performance » Moody’s Warns Higher Debt-to-Income Ratios Could Lead to Rising Default Rates for Certain MBS & ABS

Moody’s Warns Higher Debt-to-Income Ratios Could Lead to Rising Default Rates for Certain MBS & ABS

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Default rates could increase for certain types of MBS and ABS as some borrowers experience higher debt-to-income ratios, according to Moody’s Investors Service. The rating service pointed to new results from the Federal Reserve’s Survey of Consumer Finances conducted every three years. The survey showed a modest increase between 2013 and 2016 in the median ratio of debt payments to family incomes among debtors in the 20.0 percent to 39.9 percent income percentile ...
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