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
Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.

Credit Scores Change With Economy

FICO score distribution adjusts since 2008

Sept. 19, 2011

By staff

When the economy headed south, the number of consumers with very high or very low credit scores was increasing. Since the financial crisis peaked, however, the trend has reversed.

A sizeable decrease has been observed since 2008 in the number of consumers with credit scores between 300 and 499, FICO reported Monday.

The credit-scoring technology firm said that its findings were derived from a sample of consumer credit data from Equifax Inc.

Similarly, a decrease was also noted for consumers with scores ranging from 800 to 850.

The activity reversed a trend that occurred between 2005 and 2008 when the number of consumers in these two categories increased.

"In our experience, movement toward both tails of the distribution curve is typical during economic downturns," Rachel Bell, a director of FICO Labs, said in the report.

Bell explained that mainstream consumers at the top end of the score range likely moved to protect their finances by paying down revolving debt, postponing new purchases that would require financing and other similar actions. All these moves helped to improve credit scores.

Consumers a
t the lower end of the score range, however, were highly leveraged and the first to experience quick credit problems when the economy tightened.

But consumers with scores in the range of 550 to 649 have increased by 2.8 million since 2008. Bell explained that the increase might reflect "the impact to credit risk caused by serious delinquencies appearing on consumer credit reports.

"That particular shift could persist for several years," Bell said in the announcement. "As we reported in March 2011, score recovery from negative events such as mortgage foreclosure typically takes from three to seven years for consumers who meet their credit obligations following those events."

As with the outer groups, the middle group reversed a trend that was observed from 2005 to 2008 -- when the group was shrinking.

In all, around 200 million U.S. consumers have a FICO score.

next story

back to current headlines

Logout forgot

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