Tim Mullaney | USA TODAY |
“After years of being the USA’s foreclosure laughingstocks, Arizona and California now have better credit than the rest of us.
That’s from an analysis released last week by Fannie Mae, which chronicled the performance of its $2.8 trillion loan portfolio. In states hit hardest by the housing bust — Arizona, California, Nevada and Florida — Fannie Mae used to see loans go bad from one-and-a-half to an excruciating eight times as often as the national average. That’s changing fast — except in Florida.
(Photo: Joe Raedle, Getty Images)
Only 7% of Fannie’s 2013 credit losses come from California — home to nearly 20% of its loans and 27% of its 2011 writeoffs due to defaults and foreclosures. Arizona, with 2.4% of Fannie’s outstanding balances, has seen its share of credit losses plunge to 1.8% in the first half of this year, from nearly 12% in 2011.
In each state, the share of local loans that wind up as Fannie’s losses is now below the mortgage finance giant’s national average.
Florida, by contrast, accounts for almost 29% of Fannie Mae’s losses, up from 11% in 2011.”