Deliqnuecy rates, foreclosure %'s, etc. this is the type of information that is usually tracked by most lenders internally so I doubt you will see it displayed publicaly.
Having been in the non conforming loan origination business, servicing a portfolio of loans in 17 states, and also purchasing & servicing notes, I can tell you that the credit scores are valuable as they really do statiscally predict higher risk of collection and default. You might poke around the Fair Issac & Company site for some info on their modeling. Call them in San Rafael, CA to find out their web site info, etc.
My own experience is that 3% -4% or less of the loans you will create with Sub prime borrowers will be slowed paid and 1%-2% of those will go bad at some future point in time. Of course a lot of these statistics depend on how adept you are in evaluating a potential borrowers pluses and minuses.
Foreclosure and Default Rates When Holding Paper? - Posted by Neil Roseman
Posted by Neil Roseman on April 07, 2000 at 10:10:58:
I’m looking to carry some paper in a wrap and am trying to estimate my monthly risk. I’m trying to estimate what percent of my mortgages would be in default, foreclosure, or behind in their payments at any given time. I will be carrying first mortgages, with low credit buyers (at interest rates in the 10-12.5% range) I know I will be safe in the long term if I have to foreclose, but I’m trying to estimate what percent of the time I will be making a payment to the underlying mortgage without getting a payment from my payor.
Any help would be appreciated. I’ve searched the web with no success. I don’t know if I should expect a default rate of 10%, 1%, or .1%. If there are any charts on the web that would show default rates for different FICO scores, that would be great.
In L.A. Times today, an article stated Ameriquest ran an 11% default rate. Ameriquest is a large sub-prime lender.
Conventional lenders will look strongly at lending practices if the default rate is above 1.5%.
Hope this helps.