Wednesday, May 25, 2011

Mortgage Defaulters can be good credit risks.

Transunion performed a study that shows that households whose only default is on their mortgage are pretty good credit risks. Reuters does a story about it, and I have seen the powerpoint deck on it, but I can't find a link to the powerpoint.

The long story short is that sometimes people stop making payments not because they are deadbeats, but because the economy kicked their legs out from under them. Such people are good prospective credit risks.