The share of mortgage originations going to borrowers who also hold student debt has increased in recent years, according to Black Knight Financial Services’ most recent Mortgage Monitor report.
The share of originations with student loan debt hit a new high in 2014 – the most recent full year’s data available – at 19% of all originations.
Currently, about 15% of all active mortgage holders have some level of student loan debt, representing an increase of more than 40% over the past 10 years.
Overall, non-current rates are 38% higher for mortgage borrowers carrying student loan debt.
The number of borrowers with mortgages and student loans who are more than 90 days past due on their student loans is only around 1%. However, borrowers who fall into that 1% are five times more likely to be delinquent on their mortgages than those who are current on student loan debt and nearly six times more likely to be delinquent than the average borrower without any student loan debt at all.
To arrive at these findings, Black Knight merged credit bureau data with its McDash loan-level mortgage database.
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