By Tim Mullaney | USA TODAY
Fannie Mae is seeing many fewer mortgage loans go bad in California, Arizona
Florida now accounts for 29% of Fannie’s single-family home loan losses
Ohio, Indiana, Illinois and Michigan are home to 22% of Fannie’s losses
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.
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.
