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Tag Archives: Credit Score

Shadow Inventory and REOs Loom Over National Recovery

Conditions across multiple financial sectors suggest economic stabilization and growth. It's the housing market that's holding back economic recovery, according to the credit bureau Equifax. The company's latest analysis of national credit trends points to shadow inventory and REOs as major mortgage market depressors. Growth in these areas has led to bigger write-offs. Equifax says write-off dollars for home finance in 2010 more than doubled that of 2006 and 2007 combined.

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Equifax Taps Industry Veterans as Enterprise Business Directors

Equifax announced this week that it has named Jeff Flory and Jeff Schwartzel as enterprise business directors, responsible for leading efforts to acquire new customer relationships for the consumer credit reporting agency. Flory brings more than 19 years of experience to the company, most recently as VP of business development for Financial Asset Services. Schwartzel has over 12 years of industry experience. He previously served as business development executive for Deluxe Financial Services.

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Post-Foreclosure: Study Finds Mortgage-Only Defaulters Pose Less Risk

Consumers who only defaulted on their mortgage during the economic recession pose far less of a risk than consumers who went delinquent on multiple credit accounts, according to TransUnion. The credit bureau says its study showed that consumers with mortgage-only defaults performed better on new loans than those with multiple delinquencies, and this was evident across all credit scoring ranges. TransUnion also says it found no evidence that borrowers who stopped paying their mortgage had an increased cash flow in the short term.

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Landlords Undeterred by Foreclosures, Survey Reveals

More than 80 percent of independent landlords surveyed said they would rent to someone who lost a home in foreclosure, according to the National Association of Independent Landlords. However, landlords stipulated that applicants must otherwise have good credit. The association says because of the high volumes of defaults, there is a greater need for rental property, and landlords recognize that applicants with foreclosures are often good risks because they once owned their own homes.

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Freddie Mac’s Delinquencies Decline for Fourth Straight Month

The percentage of home loans going unpaid is steadily declining for the nation's second largest mortgage company. Freddie Mac reported Tuesday that its single-family seriously delinquent rate decreased to 3.63 percent in March. That's down 15 basis points from 3.78 percent in February, and the fourth consecutive month that the rate has headed south. With only a few intermittent blips upward over the last year, Freddie has recorded a drop in its seriously delinquent rate in nine of the past 12 months.

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Freddie Mac Needs $500M More from Taxpayers after Q4 Loss

Freddie Mac reported Thursday that it lost $113 million in the fourth quarter of 2010. The loss, compounded by the company's $1.6 billion quarterly dividend payment to Treasury for bailout money, left the GSE with a net worth deficit again. Freddie's regulator is requesting another draw from Treasury, this time to the tune of $500 million. The company's fourth-quarter shortfall was actually the smallest of 2010 and brings the GSE's losses for the full year to $14 billion.

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First-Time Defaulters: An Underappreciated Customer Segment?

The housing crisis and the financial downturn that followed, without question, have profoundly altered the consumer lending landscape. According to the financial advisory firm Deloitte, one change that may be underappreciated is the rapid emergence of an important customer segment that could have powerful implications for lenders - the first-time defaulter. A survey conducted by the firm found that 11 percent of banking customers have experienced a negative credit event for the first time in their lives within the last two years.

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Credit Reporting Companies Implement New Scoring Model

VantageScore 2.0, the latest credit scoring model from VantageScore Solutions, is now fully implemented at all three major credit reporting agencies - Equifax, Experian, and TransUnion. VantageScore 2.0 was created in response to significant changes in consumer credit repayment behavior, and the company says it enables lenders to better mitigate risks and make more informed lending decisions.

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Experian Designs Program to Help Underbanked Consumers

Experian announced this week that it will incorporate positive rental data into the traditional credit file in an effort to help underbanked consumers build credit. According to the FDIC Web site, an estimated 17.9 percent of U.S. households, roughly 21 million, are underbanked. Experian says having positive rental history reflected in their credit scores will help consumers who may have faced financial hardships such as foreclosure or bankruptcy rebuild their credit.

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Study Finds California Mortgage Applicants Have Highest Credit Scores

California mortgage applicants have the highest average credit scores in the nation, according to a state-by-state study conducted by the online mortgage-shopping service Mortgage Marvel. The average credit score in California is 755, a full 20 points higher than the national average. With California's well-publicized issues surrounding declining property values and foreclosures, the firm described the results of its study as ""interesting."" One exec commented, ""Many Californians have clearly figured out how to weather the financial storms.""

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