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MReport August 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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48 | M R EP O RT SERVICING THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T First Mortgage Default Rate at Highest Level Since September 2020 Additionally, the bank card default rate rose six basis points to 2.55%, and the auto loan default rate was one basis point higher at 0.62%. C redit rating agency Experian, along with the S&P Dow Jones Indices, has released its latest monthly iteration of its Consumer Credit Default Indices Report for June 2022 which aims to represent a "com- prehensive" measure of changes in consumer credit default rates and shows that the compos- ite default rate rose two basis points to 0.53%. Breaking the total default rate down, the first mortgage default rate was up two basis points to 0.38%. the highest default rate since September 2020. Additionally, the bank card default rate rose six basis points to 2.55%, and the auto loan default rate was one basis point higher at 0.62%. Four of the five major metro- politan statistical areas as defined by the U.S. Census Bureau showed higher default rates compared to last month. Miami had the largest increase, up 15 basis points to 0.99%. Chicago and Dallas each rose five basis points, to 0.58% and 0.57% respectively. Los Angeles was one basis point higher at 0.46%. New York City dropped six basis points to 0.71%. Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 a.m. ET. They are constructed to track the default experience of consumer balances in four key loan catego- ries: auto, bankcard, first mortgage lien, and second mortgage lien. The Indices are calculated based on data extracted from Experian's consumer credit database. This database is populated with indi- vidual consumer loan and pay- ment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage com- panies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

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