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Mortgage “Roll Rates” Peaked in Summer of 2009
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You're Now Reading:
Mortgage “Roll Rates” Peaked in Summer of 2009
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Mortgage “Roll Rates” Peaked in Summer of 2009
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November 1 2010 (Chris Moore)
financial picture
In a report released by credit bureau giant TransUnion, mortgage delinquency “roll rates” peaked in the summer of 2009. The “roll rate” is the percentage of borrowers who enter a worse delinquency stage on their mortgage payments each successive month. In other words, a higher percentage of borrowers are behind on their payments at 60 days than there were at 30 days and more are behind at 90 days than were at 60 days until eventually they go into foreclosure.

The report revealed roughly 25 percent of consumers who were 30 days past due on their mortgages as of June 2009 became 60 days late a month later, and more than a third who were 60 days late became three months behind during the same period.

“Consumers who are past due on their mortgages are always susceptible to going into more severe stages of delinquency,” said FJ Guarrera, one of the authors of the study.

“We found that this vulnerability was exacerbated during the recession as housing prices declined and unemployment increased.”
The report also found that those with a home equity line of credit or home equity loan exhibited lower roll rates during the housing boom and higher ones once the mortgage crisis began.

“In March 2006, the national 30-60 mortgage roll rate was 12.56 percent for borrowers with home equity loans/lines and 17.16 percent for those without. However, by March 2009 the 30-60 roll rates had skyrocketed to 26.55 percent for borrowers with home equity loans/lines, while increasing to only 22.66 percent for those borrowers without.”

This may have to do with the fact that many of the loans being secured towards the end of the housing boom were high risk loans used by borrowers employing second mortgages to avoid putting anything down on their homes (100% financing).

Many of those high risk loans with high loan-to-values are now deeply underwater, leading to a high rate of default, whether by necessity or choice.

And as one would expect, in areas of the country where unemployment has been less severe and home prices have been relatively stable, roll rates have been at or below the national level.

Tags: roll-rate, foreclosures, high risk loans, TransUnion, delinquency, housing prices decline, unemployment, mortgages

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Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
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Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
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FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates

November 1 2010 (Chris Moore)
financial picture
In a report released by credit bureau giant TransUnion, mortgage delinquency “roll rates” peaked in the summer of 2009. The “roll rate” is the percentage of borrowers who enter a worse delinquency stage on their mortgage payments each successive month. In other words, a higher percentage of borrowers are behind on their payments at 60 days than there were at 30 days and more are behind at 90 days than were at 60 days until eventually they go into foreclosure.

The report revealed roughly 25 percent of consumers who were 30 days past due on their mortgages as of June 2009 became 60 days late a month later, and more than a third who were 60 days late became three months behind during the same period.

“Consumers who are past due on their mortgages are always susceptible to going into more severe stages of delinquency,” said FJ Guarrera, one of the authors of the study.

“We found that this vulnerability was exacerbated during the recession as housing prices declined and unemployment increased.”
The report also found that those with a home equity line of credit or home equity loan exhibited lower roll rates during the housing boom and higher ones once the mortgage crisis began.

“In March 2006, the national 30-60 mortgage roll rate was 12.56 percent for borrowers with home equity loans/lines and 17.16 percent for those without. However, by March 2009 the 30-60 roll rates had skyrocketed to 26.55 percent for borrowers with home equity loans/lines, while increasing to only 22.66 percent for those borrowers without.”

This may have to do with the fact that many of the loans being secured towards the end of the housing boom were high risk loans used by borrowers employing second mortgages to avoid putting anything down on their homes (100% financing).

Many of those high risk loans with high loan-to-values are now deeply underwater, leading to a high rate of default, whether by necessity or choice.

And as one would expect, in areas of the country where unemployment has been less severe and home prices have been relatively stable, roll rates have been at or below the national level.

Tags: roll-rate, foreclosures, high risk loans, TransUnion, delinquency, housing prices decline, unemployment, mortgages

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

November 1 2010 (Chris Moore)
financial picture
In a report released by credit bureau giant TransUnion, mortgage delinquency “roll rates” peaked in the summer of 2009. The “roll rate” is the percentage of borrowers who enter a worse delinquency stage on their mortgage payments each successive month. In other words, a higher percentage of borrowers are behind on their payments at 60 days than there were at 30 days and more are behind at 90 days than were at 60 days until eventually they go into foreclosure.

The report revealed roughly 25 percent of consumers who were 30 days past due on their mortgages as of June 2009 became 60 days late a month later, and more than a third who were 60 days late became three months behind during the same period.

“Consumers who are past due on their mortgages are always susceptible to going into more severe stages of delinquency,” said FJ Guarrera, one of the authors of the study.

“We found that this vulnerability was exacerbated during the recession as housing prices declined and unemployment increased.”
The report also found that those with a home equity line of credit or home equity loan exhibited lower roll rates during the housing boom and higher ones once the mortgage crisis began.

“In March 2006, the national 30-60 mortgage roll rate was 12.56 percent for borrowers with home equity loans/lines and 17.16 percent for those without. However, by March 2009 the 30-60 roll rates had skyrocketed to 26.55 percent for borrowers with home equity loans/lines, while increasing to only 22.66 percent for those borrowers without.”

This may have to do with the fact that many of the loans being secured towards the end of the housing boom were high risk loans used by borrowers employing second mortgages to avoid putting anything down on their homes (100% financing).

Many of those high risk loans with high loan-to-values are now deeply underwater, leading to a high rate of default, whether by necessity or choice.

And as one would expect, in areas of the country where unemployment has been less severe and home prices have been relatively stable, roll rates have been at or below the national level.

Tags: roll-rate, foreclosures, high risk loans, TransUnion, delinquency, housing prices decline, unemployment, mortgages

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.