New Equifax Study: Silent Seconds from the Borrower Perspective

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Silent Seconds: Resounding Impact

While home price depreciation shows signs of slowing, secondary mortgage market investors still have reason to be concerned about the impact of borrower equity. According to a recent study conducted by Equifax Capital Markets, the combined loan to values (CLTVs) on current loans are worse than many realize. While home prices have dominated headlines, the increased prevalence of second liens has gone underreported. In July 2009, 25% of borrowers with current Alt-A loans had closed-end seconds compared to 10% of borrowers in July 2005.

The Equifax study analyzed the state of non-agency securitized mortgage borrower health from Q3 2005 to Q3 2009 by leveraging borrower credit information, FHFA home price data and loan-level data. To conduct its analysis, Equifax statisticians isolated the population of non-agency securitized mortgages and studied the performance of these loans across key default risk trends.

To learn more, download an overview of the

href="http://www.equifax.com/PR/capmarket/CapitalMarketsDataPrimerFN.pdf">Equifax Capital Markets Study.

Contact Information

Tim Klein

Vice President, Public Relations

(404) 885-8555

tim.klein@equifax.com

Contact Information

Jennifer Costello

Public Relations Director

(404) 885-8907

jennifer.costello@equifax.com

News Source : New Equifax Study: Silent Seconds from the Borrower Perspective