Symbol

Description

Value

Source

US average market rate of 30 year conforming loan

4.20%

Freddie Mac PMMS, September 2014

Risk free rate.

3.21%

US Treasury, September 2014

Annual US home price volatility

4.77%

FHFA HPI 1991Q1 to 2014Q3

Non-performing loan market to book ratio

0.3379

FDIC 2014Q3 home loan sales data

Performing loan market to book ratio

0.6877

FDIC 2014Q3 home loan sales data

Average length of home ownership

6 years

National Association of Realtors

Average down payment requirement

10%

mortgageqna.com

Average REO discount from market value

35.90%

RealtyTrac

Average buyer REO repair expense

7663

La Jeunesse [14]

Average lender REO repair expense

2252

La Jeunesse [14]