Calabria noted that the increase in debt-to-income (DTI) ratios has seen many borrowers push past 50%, raising concerns about the long-term health of the mortgage market.
Stork challenged Calabria's view, arguing that despite the focus on credit risk, the credit box for GSEs has largely remained constant over the last five years.
Parrott countered that the GSEs maintain a relatively low credit risk, citing their recent actions involving credit risk transfers as evidence of managing risk effectively.
Calabria emphasized the past year’s data indicating that high DTIs have directly correlated with mortgage forbearance, highlighting the importance of monitoring these financial indicators.
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