May 28, 2011

Second Mortgage Defaults Post Sudden Increase

According to data released by S&P Indices and Experian, the default rate on second lien mortgages has increased for the first time in at least five months.

The agencies’ report shows second mortgage defaults rose from 1.42 percent in March to 1.51 percent in April. First mortgages, on the other hand, saw a decrease in default rates, down from 2.33 percent to 2.16 percent.

These results are based on data extracted from Experian’s consumer credit database, which is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

Experian’s base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders. The default indices are developed jointly by Standard & Poor’s and Experian.

Tags: banks, credit, mortgage defaults, mortgages

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