Mortgage “Roll Rates” Peaked in Summer of 2009
Mortgage “Roll Rates” Peaked in Summer of 2009
Mortgage “Roll Rates” Peaked in Summer of 2009
Helpful
Tools
Mortgage
Calculator

Estimate your monthly payment for a home purchase or refinance
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about mortgage loans to find the one that's right for you
15 Year vs 30 Year
Loan Comparison

Compare payments between a 15 year and 30 year mortgage loan
Today's Mortgage
Rates

See today's current mortgage rates. Shop, compare and save.

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 LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
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.
Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

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 LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
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.
Helpful Tools

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

HOW LOANRATENETWORK
LOAN CENTER 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 LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
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.