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FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
READY TO SPEAK TO A PROFESSIONAL?
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
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Mortgage-Only Defaulters Perform Better on New Loans
HOW LOANRATEUPDATE WORKS
READ OUR DISCLOSURE
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
READY TO SPEAK TO A PROFESSIONAL?
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
Pick the service you desire below
Mortgage-Only Defaulters Perform Better on New Loans
HOW LOANRATEUPDATE WORKS
READ OUR DISCLOSURE
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
LOANRATEUPDATE IS NOT A LENDER OR A BROKER BUT WE HAVE LOTS OF FRIENDS WHO ARE
Pick the service you desire below
Mortgage-Only Defaulters Perform Better on New Loans

June 3, 2011 (Chris Moore)

Are borrowers who only defaulted on their mortgage loans during the economic downturn a better credit risk than borrowers who defaulted on their mortgage loans and their other debt, such as car loans and credit cards? A recent study by credit bureau giant TransUnion would suggest that they are.

Using a random sample of consumers who had met the following criteria:

An open mortgage loan on or before January 2008, who had one non-mortgage debt open on or before December 2007, incurred a 120+ delinquency on their mortgage loan between January 2008 and June 2009, and subsequently incurred at least one additional debt after the mortgage became delinquent;

TransUnion found that consumers with mortgage-only defaults did in fact perform better on new loans than those who had multiple delinquencies. Their conclusion was based on two factors; delinquency rates on new auto loans and delinquency rates on new credit cards that were obtained after the borrowers mortgages went 120+ days delinquent.

Here’s what they found:

Percentage of mortgage defaulters who went 60+ days late on new auto loans:

• 5.8 percent for borrowers with mortgage-only delinquencies
• 13.1 percent for borrowers with multiple delinquencies

Percentage of mortgage defaulters who went 60+ days late on new credit cards:

• 11.4 percent for borrowers with mortgage-only delinquencies
• 27.1 percent for borrowers with multiple delinquencies

The study for the most part disproved the theory that consumers who stopped paying their mortgages then had more cash flow that could be used to pay off their other debts. Also known as the “excess liquidity theory,” the study also found that during the recession, the delinquency rate of auto loans obtained after the borrower went 120 days past due on their mortgage, decreased as more time passed.

60+ days delinquent levels of new auto loans after borrowers mortgage reached 120 day delinquency:

• Opened within six months — 10.4 percent delinquent
• Opened within seven to 11 months — 9.7 percent delinquent
• Opened 12 or more months later — 9.3 percent delinquent

“This recession was unique in that certain consumers who defaulted on mortgages would otherwise be good credit risks. It appears their actions were driven more by difficult economic circumstances than by any inherent inability to manage debt,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “Also, these results are well-aligned with our past research into the reversal of the payment hierarchy dynamic. Bottom line — consumers prioritize their payments based on product preference when they find themselves constrained financially. In that sense, loan defaults have always been strategic.”

When (and if) the economy improves, the credit records of millions of Americans will have been damaged by the economic downturn. Those who found themselves defaulting on their mortgages only might find lenders to be a bit more friendly than those who “let it all go.”

Read the report in its entirety on TransUnion’s website.

Tags: TransUnion, mortgage defaults, mortgage loans, economic downturn, new auto loans, credit cards, excess liquidity theory, 120 day+ delinquency

What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
Calculate how much you can afford
BUYING OR SELLING A HOME IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makles it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS

June 3, 2011 (Chris Moore)

Are borrowers who only defaulted on their mortgage loans during the economic downturn a better credit risk than borrowers who defaulted on their mortgage loans and their other debt, such as car loans and credit cards? A recent study by credit bureau giant TransUnion would suggest that they are.

Using a random sample of consumers who had met the following criteria:

An open mortgage loan on or before January 2008, who had one non-mortgage debt open on or before December 2007, incurred a 120+ delinquency on their mortgage loan between January 2008 and June 2009, and subsequently incurred at least one additional debt after the mortgage became delinquent;

TransUnion found that consumers with mortgage-only defaults did in fact perform better on new loans than those who had multiple delinquencies. Their conclusion was based on two factors; delinquency rates on new auto loans and delinquency rates on new credit cards that were obtained after the borrowers mortgages went 120+ days delinquent.

Here’s what they found:

Percentage of mortgage defaulters who went 60+ days late on new auto loans:

• 5.8 percent for borrowers with mortgage-only delinquencies
• 13.1 percent for borrowers with multiple delinquencies

Percentage of mortgage defaulters who went 60+ days late on new credit cards:

• 11.4 percent for borrowers with mortgage-only delinquencies
• 27.1 percent for borrowers with multiple delinquencies

The study for the most part disproved the theory that consumers who stopped paying their mortgages then had more cash flow that could be used to pay off their other debts. Also known as the “excess liquidity theory,” the study also found that during the recession, the delinquency rate of auto loans obtained after the borrower went 120 days past due on their mortgage, decreased as more time passed.

60+ days delinquent levels of new auto loans after borrowers mortgage reached 120 day delinquency:

• Opened within six months — 10.4 percent delinquent
• Opened within seven to 11 months — 9.7 percent delinquent
• Opened 12 or more months later — 9.3 percent delinquent

“This recession was unique in that certain consumers who defaulted on mortgages would otherwise be good credit risks. It appears their actions were driven more by difficult economic circumstances than by any inherent inability to manage debt,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “Also, these results are well-aligned with our past research into the reversal of the payment hierarchy dynamic. Bottom line — consumers prioritize their payments based on product preference when they find themselves constrained financially. In that sense, loan defaults have always been strategic.”

When (and if) the economy improves, the credit records of millions of Americans will have been damaged by the economic downturn. Those who found themselves defaulting on their mortgages only might find lenders to be a bit more friendly than those who “let it all go.”

Read the report in its entirety on TransUnion’s website.

Tags: TransUnion, mortgage defaults, mortgage loans, economic downturn, new auto loans, credit cards, excess liquidity theory, 120 day+ delinquency

What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
Calculate how much you can afford
BUYING OR SELLING A HOME
IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makles it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS

June 3, 2011 (Chris Moore)

Are borrowers who only defaulted on their mortgage loans during the economic downturn a better credit risk than borrowers who defaulted on their mortgage loans and their other debt, such as car loans and credit cards? A recent study by credit bureau giant TransUnion would suggest that they are.

Using a random sample of consumers who had met the following criteria:

An open mortgage loan on or before January 2008, who had one non-mortgage debt open on or before December 2007, incurred a 120+ delinquency on their mortgage loan between January 2008 and June 2009, and subsequently incurred at least one additional debt after the mortgage became delinquent;

TransUnion found that consumers with mortgage-only defaults did in fact perform better on new loans than those who had multiple delinquencies. Their conclusion was based on two factors; delinquency rates on new auto loans and delinquency rates on new credit cards that were obtained after the borrowers mortgages went 120+ days delinquent.

Here’s what they found:

Percentage of mortgage defaulters who went 60+ days late on new auto loans:

• 5.8 percent for borrowers with mortgage-only delinquencies
• 13.1 percent for borrowers with multiple delinquencies

Percentage of mortgage defaulters who went 60+ days late on new credit cards:

• 11.4 percent for borrowers with mortgage-only delinquencies
• 27.1 percent for borrowers with multiple delinquencies

The study for the most part disproved the theory that consumers who stopped paying their mortgages then had more cash flow that could be used to pay off their other debts. Also known as the “excess liquidity theory,” the study also found that during the recession, the delinquency rate of auto loans obtained after the borrower went 120 days past due on their mortgage, decreased as more time passed.

60+ days delinquent levels of new auto loans after borrowers mortgage reached 120 day delinquency:

• Opened within six months — 10.4 percent delinquent
• Opened within seven to 11 months — 9.7 percent delinquent
• Opened 12 or more months later — 9.3 percent delinquent

“This recession was unique in that certain consumers who defaulted on mortgages would otherwise be good credit risks. It appears their actions were driven more by difficult economic circumstances than by any inherent inability to manage debt,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “Also, these results are well-aligned with our past research into the reversal of the payment hierarchy dynamic. Bottom line — consumers prioritize their payments based on product preference when they find themselves constrained financially. In that sense, loan defaults have always been strategic.”

When (and if) the economy improves, the credit records of millions of Americans will have been damaged by the economic downturn. Those who found themselves defaulting on their mortgages only might find lenders to be a bit more friendly than those who “let it all go.”

Read the report in its entirety on TransUnion’s website.

Tags: TransUnion, mortgage defaults, mortgage loans, economic downturn, new auto loans, credit cards, excess liquidity theory, 120 day+ delinquency

THINKING OF BUYING
A NEW CAR?


WE GIVE YOU THE INSIDE TIPS THAT
COULD SAVE YOU THOUSANDS.
What's the four square system? How much is your trade-in really worth and why those payments really do seem a little higher than you thought.
There's both advantages and disadvantages to leasing and buying depending on what you're planning to use your car for and how long you plan on keeping it.
Sure that low interest dealer financing sounds really attractive but there's a price to be paid for that. We spill the beans as to why getting your own financing may save you money.
Buying a car at a dealership hasn't changed much through the years but doing your research on the internet can you save you a lot of time and most importantly, a lot of money.
Calculate how much you can afford
BUYING OR SELLING A HOME IS A BIG DECISION
WE MAKE IT EASIER
Buying a home is a big decision. If you are not prepared, the decisions you make, the questions you don’t ask, and the details you miss could cost you thousands – in price, fees, financing, property issues, and home repairs.
Home loans can be confusing. There's a lot of options and we provide the information that makes it simple. Don't sign on that dotted line until you know. It could cost you.
FIND THE CREDIT CARD THAT'S RIGHT FOR YOU
THERE'S A CREDIT CARD FOR VIRTUALLY ANY SITUATION. FIND YOURS.
YOU'VE WORKED HARD TO BUILD YOUR DREAM

LEARN ABOUT THE LOAN OPTIONS AVAILABLE TO EXPAND YOUR BUSINESS