Which credit score tiers have the highest incidence of strategic default?

April 16, 2012 by josephine.munis

A recent Experian study showed that strategic defaults accounted for 23 percent of all mortgage defaults 60 days past due or greater in Q4 2011. Other findings included the following:

  • Prime and super-prime consumers (VantageScore® A and B tiers) have the highest incidence of strategic default
  • Average outstanding mortgage balances for strategic defaulters are nearly 36 percent higher than their nonstrategic default counterparts.

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Source: Experian-Oliver Wyman Market Intelligence Reports and strategic default studies.

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