There’s a definite, confident relationships involving the DTI containers and three-12 months standard rates Getting simplicity and you will easy translation, we broke up the newest delivery regarding DTI ratios on the three bins: DTIs lower than otherwise comparable to thirty six, DTIs ranging from thirty six and 43, and you may DTIs more than or equal to 43. We contemplate four mutually personal mortgage vintages: 200003 mortgage originations, hence correspond to the newest pre-growth period; 200407 originations, which include the brand new increase period; 2008eleven originations, which include the new economic crisis months; and you will 2012fifteen originations, and this correspond to the newest healing period. The connection is far more pronounced towards boom and you may crisis symptoms, which were characterized by notably high non-payments in contrast to new pre-growth and you may healing periods. The partnership was starkest for 200811 vintages; standard costs to have DTI percentages above the 43 percent tolerance was over 4 times higher than the individuals associated with the DTI rates below 36 %.