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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.)
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