Chart 51 The Denominator Effect: Shrinking Portfolios Will Create Higher Loss Ratios

Year Cash-Out Dollars as a Percentage of Refinance Origination Amount Total Home Equity Cashed Out (dollars in billions)
1993 4.2% $19.9
1994 7.2% $13.8
1995 7.5% $11.2
1996 8.4% $17.4
1997 8.6% $21.4
1998 6.1% $39.9
1999 9.0% $37.0
2000 11.5% $26.2
2001 8.7% $82.9
2002 8.0% $111.1
2003 7.2% $146.8
2004 12.9% $141.9
2005 (E) 21.1% $243.0
2006 (F) 14.7% $116.5
2007 (F) 13.5% $94.3

Notes: (E) Indicates the value is an estimate and is subject to revision. (F) Indicates the values are forecasted based on Freddie Mac's most recent economic outlook.
Sources: Freddie Mac and CIBC World Markets. (Data is comprised of Freddie Mac's 2Q 2005 Cash-Out Refinance Report.)