Auto Credit Express Blog
May 1, 2008
Experian Study Shows Severely Delinquent Mortgage Accounts Up 15 Percent in One Year
In California, the number of severely delinquent mortgage accounts increased 35 percent
Irvine, Calif., April 30, 2008 — Many U.S. homeowners continue to weather the current credit crunch and real estate market conditions, as the number of severely delinquent mortgage accounts increased 15 percent in one year, according to a National Score Index® study conducted by Experian Consumer DirectSM, the leading provider of online direct-to-consumer credit reports, scores and monitoring products.
“Changes in the housing market have affected many homeowners across the nation, with consumers in some states showing a significant increase in severely delinquent mortgage accounts,” said Ty Taylor, group president of Experian InteractiveSM. “Delinquent accounts can have a negative impact on a consumer’s credit score which could lead to higher interest rates when trying to refinance a current home loan, obtain a new loan or other lines of credit.”
The national average credit score for those with a severely delinquent mortgage account was 599 in February 2008, compared to 605 in February 2007. Conversely, the average credit score in February 2008 for those with a mortgage account with no delinquencies was 750. Severely delinquent mortgage accounts include charge-offs, short sales, foreclosures, repossession, collections, voluntary surrender and bankruptcy.
The study also found that:
• The average mortgage balance for those with a severely delinquent mortgage account was $131,699 in February 2008, compared to $124,465 in February 2007
• The states with the most severely delinquent mortgage accounts include California (12.4 percent of mortgage accounts are severely delinquent), Florida (8 percent of mortgage accounts are severely delinquent) and Texas(6.3 percent of mortgage accounts are severely delinquent)
• Washington D.C. had the lowest average credit score for those with a severely delinquent mortgage account at 583
More information can be found at www.NationalScoreIndex.com. This study used Experian data from February 2007 and February 2008.
Experian’s National Score Index
Experian’s National Score Index study is based on a nationwide sampling of 2 million consumer credit files. Using the PLUS Score® model, the national average credit score for September to October 2007 was 692. In November 2007 it was 693 and December 2007 to February 2008 it was 692. Experian’s National Score Index Web site is updated monthly with the most recent Experian data on U.S. consumers’ credit and is a powerful indicator of the nation’s overall financial health. In addition to providing average credit scores for the nation, regions, states and local areas, the National Score Index monitors several other components of consumer credit behavior, including average debt, credit utilization, late payments and credit inquiries.
