Apr 13 2009
Mortgage Borrower Risk Profiles, Delinquencies, and Interest Rates in 2005–2008
Mortgage risk, delinquency, and interest rates have become a critical issue for both lenders and borrowers. To help assess these metrics, we released the brief, Mortgage Borrower Risk Profiles, Delinquencies, and Interest Rates in 2005–2008. This brief contains a high level marketplace analysis of mortgage pricing strategies, a review of delinquency rates across borrower characteristics and demographics from survey data from the 2005–2008 period. The brief concludes with several strategic implications for credit unions.
The report is the third in a series of Consumer Finance Research briefs based on information derived from Ohio State University’s Consumer Finance Monthly (CFM), and explores a number of key research questions:
1. What might a simplified mortgage pricing model look like?
2. How do delinquency rates vary across borrowers’ financial characteristics?
3. How do delinquency rates vary across demographic groups?
4. Did mortgage pricing based on rising house prices contribute to delinquencies?
5. How can both underpriced and overpriced mortgage loans be avoided?