Impact on Consumer VantageScore Credit Scores
Tags: Decision Analytics, Risk Management
This paper discusses the impact on consumer VantageScore credit scores due to various mortgage loan restructuring options.
The recent economic downturn and the credit market crisis combined to produce immense pressure on American consumers and the financial services industry. Rising unemployment, the continuing decline in property values, together with much tighter credit requirements have resulted in increasing numbers of significantly delinquent mortgages and foreclosure actions. Most recently, prime loans, which represent two-thirds of all mortgages, experienced a 116.2 percent increase in serious delinquencies over the same period one year ago. To mitigate the negative impact caused by the crisis, the U.S. government and mortgage lenders developed multiple programs aimed at helping homeowners better manage their mortgage debt and meet monthly mortgage payments, ultimately hoping to stem foreclosures and allow families to remain in their homes.