Small percentage of brokers account for most early payment defaultsMortgagePress.comEarly mortgage payment defaults,statistics
CoreLogic, a provider of mortgage risk assessment and fraud
prevention solutions, has released findings from its broker
management database that show that seven percent of brokers account
for 63 percent of early payment defaults, with the riskiest 0.5
percent of brokers accounting for 70 percent of all losses.
These most recent statistics illustrate the key link that
brokers play in the risk management chain and why broker monitoring
and management tools are critical to the financial prospects of
wholesale originators. "These figures are based on predicted first
year loss concentrations," said Mark Fleming, chief economist for
CoreLogic. "While the first year is generally characterized by low
rates of default and, in most cases, little loss, when losses do
happen, they are big."
For more information, visit www.corelogic.com.