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
Will You Walk Away from Your Mortgage?
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
Will You Walk Away from Your Mortgage?
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
Will You Walk Away from Your Mortgage?

October 13, 2011 (Chris Moore)

An estimated 35 percent of all mortgage defaults are strategic whereby borrowers who are financially capable of making their mortgage payment choose to default. Strategic defaults account for more than $20 billion of all defaults annually and are expected to persist for the foreseeable future.

Earlier in the year FICO Labs announced a new technology that substantially improves lenders’ ability to identify borrowers at risk of strategic default on their mortgage. The new technology is now being used by four of the top 10 mortgage servicers.

The technology allows mortgage servicers to recognize possible problem borrowers earlier so that they may take preventative action and reduce the costly impact of strategic defaults.

In the past, lenders used the degree of home price depreciation as the basis for predicting defaults. But new research shows that borrowers whose homes have lost the most value are only twice as likely to default as those whose homes have lost the least value.

Strategic defaulters also tend to be savvier managers of their credit than the general population, with higher FICO credit scores, lower revolving credit balances and maintaining better control over their credit card usage.

FICO Labs’ technology has demonstrated the ability to identify borrowers who are over 100 times more likely to default strategically than other borrowers.

“Mortgage payment patterns have shifted, and some borrowers are intentionally defaulting on their mortgages because they believe it is in their best financial interest, and because they believe the consequences will be minimal,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “Before mortgage servicers can work effectively with potential strategic defaulters, they must first be able to identify them. Our new research shows it is possible for servicers to find those at greatest risk of strategic default, both to prevent losses and to prevent borrowers from making a decision that will damage their credit future.”

FICO Labs research found that among current borrowers who are not delinquent on any loans:

– The riskiest borrowers were found to be 110 times more likely to commit a strategic default than the least riskiest borrowers.

– The riskiest 20 percent of borrowers committed 67 percent of the strategic defaults. So a servicer could reach two-thirds of those who would commit strategic default by targeting just 20 percent of its borrowers.

“Distressed borrowers are increasingly likely to see strategic default as a viable or necessary option, but such decisions are devastating to not just their own credit profiles but also lenders’ portfolios and the economy as a whole,” said Greg Pelling, vice president of scores and analytics at FICO. “Fortunately, the technology exists to reverse the trend toward strategic defaults. Our goal is to help the industry implement that technology as quickly as possible.”

Tags: FICO, strategic defaults, mortgage payments, mortgage defaults, credit scores, borrowers at risk, credit cards, credit balances

Source:
FICO

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

October 13, 2011 (Chris Moore)

An estimated 35 percent of all mortgage defaults are strategic whereby borrowers who are financially capable of making their mortgage payment choose to default. Strategic defaults account for more than $20 billion of all defaults annually and are expected to persist for the foreseeable future.

Earlier in the year FICO Labs announced a new technology that substantially improves lenders’ ability to identify borrowers at risk of strategic default on their mortgage. The new technology is now being used by four of the top 10 mortgage servicers.

The technology allows mortgage servicers to recognize possible problem borrowers earlier so that they may take preventative action and reduce the costly impact of strategic defaults.

In the past, lenders used the degree of home price depreciation as the basis for predicting defaults. But new research shows that borrowers whose homes have lost the most value are only twice as likely to default as those whose homes have lost the least value.

Strategic defaulters also tend to be savvier managers of their credit than the general population, with higher FICO credit scores, lower revolving credit balances and maintaining better control over their credit card usage.

FICO Labs’ technology has demonstrated the ability to identify borrowers who are over 100 times more likely to default strategically than other borrowers.

“Mortgage payment patterns have shifted, and some borrowers are intentionally defaulting on their mortgages because they believe it is in their best financial interest, and because they believe the consequences will be minimal,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “Before mortgage servicers can work effectively with potential strategic defaulters, they must first be able to identify them. Our new research shows it is possible for servicers to find those at greatest risk of strategic default, both to prevent losses and to prevent borrowers from making a decision that will damage their credit future.”

FICO Labs research found that among current borrowers who are not delinquent on any loans:

– The riskiest borrowers were found to be 110 times more likely to commit a strategic default than the least riskiest borrowers.

– The riskiest 20 percent of borrowers committed 67 percent of the strategic defaults. So a servicer could reach two-thirds of those who would commit strategic default by targeting just 20 percent of its borrowers.

“Distressed borrowers are increasingly likely to see strategic default as a viable or necessary option, but such decisions are devastating to not just their own credit profiles but also lenders’ portfolios and the economy as a whole,” said Greg Pelling, vice president of scores and analytics at FICO. “Fortunately, the technology exists to reverse the trend toward strategic defaults. Our goal is to help the industry implement that technology as quickly as possible.”

Tags: FICO, strategic defaults, mortgage payments, mortgage defaults, credit scores, borrowers at risk, credit cards, credit balances

Source:
FICO

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

October 13, 2011 (Chris Moore)

An estimated 35 percent of all mortgage defaults are strategic whereby borrowers who are financially capable of making their mortgage payment choose to default. Strategic defaults account for more than $20 billion of all defaults annually and are expected to persist for the foreseeable future.

Earlier in the year FICO Labs announced a new technology that substantially improves lenders’ ability to identify borrowers at risk of strategic default on their mortgage. The new technology is now being used by four of the top 10 mortgage servicers.

The technology allows mortgage servicers to recognize possible problem borrowers earlier so that they may take preventative action and reduce the costly impact of strategic defaults.

In the past, lenders used the degree of home price depreciation as the basis for predicting defaults. But new research shows that borrowers whose homes have lost the most value are only twice as likely to default as those whose homes have lost the least value.

Strategic defaulters also tend to be savvier managers of their credit than the general population, with higher FICO credit scores, lower revolving credit balances and maintaining better control over their credit card usage.

FICO Labs’ technology has demonstrated the ability to identify borrowers who are over 100 times more likely to default strategically than other borrowers.

“Mortgage payment patterns have shifted, and some borrowers are intentionally defaulting on their mortgages because they believe it is in their best financial interest, and because they believe the consequences will be minimal,” said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. “Before mortgage servicers can work effectively with potential strategic defaulters, they must first be able to identify them. Our new research shows it is possible for servicers to find those at greatest risk of strategic default, both to prevent losses and to prevent borrowers from making a decision that will damage their credit future.”

FICO Labs research found that among current borrowers who are not delinquent on any loans:

– The riskiest borrowers were found to be 110 times more likely to commit a strategic default than the least riskiest borrowers.

– The riskiest 20 percent of borrowers committed 67 percent of the strategic defaults. So a servicer could reach two-thirds of those who would commit strategic default by targeting just 20 percent of its borrowers.

“Distressed borrowers are increasingly likely to see strategic default as a viable or necessary option, but such decisions are devastating to not just their own credit profiles but also lenders’ portfolios and the economy as a whole,” said Greg Pelling, vice president of scores and analytics at FICO. “Fortunately, the technology exists to reverse the trend toward strategic defaults. Our goal is to help the industry implement that technology as quickly as possible.”

Tags: FICO, strategic defaults, mortgage payments, mortgage defaults, credit scores, borrowers at risk, credit cards, credit balances

Source:
FICO

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