twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Risk of Delinquency Eases Again

Q2 Credit Risk Index 127.66

Sept. 9, 2010

By staff

The risk of default improved for the second quarter in a row, according to a new report that also found lower risk in towns with universities.

Credit risk declined 0.9 percent in the second quarter.

The finding was reported this week by TransUnion.

It was the second consecutive quarter that risk declined.

TransUnion's Credit Risk Index came in at 127.66 for the second quarter, down from 128.83 in the prior period. Compared to a year earlier, the index was 5 percent lower.

The index is an "indicator of consumer credit risk and is much more highly correlated to consumer delinquency rates than the average credit score or the average credit score of a business' customer base," TransUnion said. It represents the weighted average probability of 90-day or more delinquency for consumers in a given region relative to the entire country. An index above 100 indicates a higher level of relative risk.

TransUnion said the index was determined using a database of 27 million randomly sampled and anonymous consumer records. Each record includes 200 variables.

Nevada's 166.22 Credit Risk Index was higher than any state, followed by 162.88 in Mississippi and 161.51 in Texas. On the other end of the spectrum, North Dakota's index was only 80.47, while the Upper Midwest fared well as a region.

"At the end of the second quarter in 2010, 46 states and the District of Columbia experienced declines in their respective credit risk indices, signaling that a broad improvement in consumer credit conditions is finally taking root," the report said. "Only Alaska, Hawaii, Idaho and North Carolina experienced increases in their credit risk indices; however, it is important to note that all four states have a credit risk index below the national index."

TransUnion predicts that small declines in the national index will continue, while delinquency will also see improvement as employment conditions improve.

A positive trend noted in the report was a debt reduction by consumers, which TransUnion Global Chief Scientist Chet Wiermanski called "a fundamental paradigm shift in consumer behavior."

TransUnion also analyzed how university cities compare to the largest city in the state of the university and found that the average index was just 116.13 for university towns compared to 144.65 for the largest cities in the same state.

Mortgage delinquency of at least 90 days was just 5.0 percent in university cities. But in the largest cities, the average rate was 8.9 percent.

Wiermanski said stable employment and a captive consumer base with disposable income helped keep the index low in university towns. In addition, established and retired adults tend to migrate to university areas because of cultural and literary offerings.

next story

back to current headlines

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders