The second group, the Financially Tenuous, also has what CFSI calls an unhealthy ratio of debt to income
(41%), but does not plan for future, irregular large purchases.
This compared with a debt to income
ratio - also known as a debt stress level - of 13.
For example, households with incomes between $50,000 and $100,000 increased their rates of aggregate mortgage debt to aggregate income by about one-sixth and their corresponding consumer debt to income
ratio by roughly 50 percent.
The AlterNet program was established primarily for the purchase of mortgage loans made to borrowers that may have imperfect credit histories, higher debt to income
ratios or mortgage loans that present certain other risks to investors.
Treasury securities having maturities comparable to the transaction by more than 10 percentage points; (2) the consumer's percentage of total monthly debt to income
exceeds 60 percent after the transaction is consummated; or (3) all points and other fees paid before closing exceed 8 percent of the loan amount.
By using this pool, exceptions may be made to applicants' debt to income
ratios, employment history requirements, source of income definitions and other criteria.
In our 2005 holiday forecast, we expressed concern that consumers could not sustain current debt to income