In California, the number of severely delinquent mortgage accounts
increased 35 percent
IRVINE, Calif., April 30 /PRNewswire-FirstCall/ -- 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(R)
study conducted by Experian Consumer Direct(SM), 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 Interactive(SM). "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 http://www.NationalScoreIndex.com.
This study used Experian data from February 2007 and February 2008.
About 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(R) 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.
About Experian Consumer Direct
Experian Consumer Direct is part of Experian Interactive and a market
leader for online credit reports, scores and monitoring products delivered
directly to consumers through Web sites such as
http://www.FreeCreditReport.com and http://www.FamilySecure.com. Among its
products, the business provides consumers with instant access to their
credit report and credit score, plus credit monitoring products that
monitor all three national credit reports daily and include fraud
resolution. Experian Consumer Direct has established integrated, co-branded
partnerships with leading online financial destinations that provide
consumers with a broad range of comprehensive online financial products and
information essential to managing one's financial life. For more
information, visit http://www.experian.com.
About Experian
Experian(R) is a global leader in providing information, analytical and
marketing services to organizations and consumers to help manage the risk
and reward of commercial and financial decisions. Combining its unique
information tools and deep understanding of individuals, markets and
economies, Experian partners with organizations around the world to
establish and strengthen customer relationships and provide their
businesses with competitive advantage. For consumers, Experian delivers
critical information that enables them to make financial and purchasing
decisions with greater control and confidence. Clients include
organizations from financial services, retail and catalog,
telecommunications, utilities, media, insurance, automotive, leisure,
e-commerce, manufacturing, property and government sectors.
Experian Group Limited is listed on the London Stock Exchange (EXPN)
and is a constituent of the FTSE 100 index. It has corporate headquarters
in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and
Nottingham, UK. Experian employs approximately 15,500 people in 36
countries worldwide, supporting clients in more than 65 countries. Annual
sales are in excess of $3.8 billion.
For more information, visit the Group's Web site on
http://www.experiangroup.com.
Experian and the marks used herein are service marks or registered
trademarks of Experian Information Solutions, Inc. Other product and
company names mentioned herein may be the trademarks of their respective
owners.
Contact: Kelly Poffenberger
Experian Public Relations
1 949 567 7634
kelly.poffenberger@experian.com
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