Experian Study Shows Severely Delinquent Mortgage Accounts Up 15 Percent in One Year

In California, the number of severely delinquent mortgage accounts increased 35 percent

Irvine, Calif., April 30, 2008 — Many U.S. homeowners continue to weather the current credit crunch and real estate market conditions, as the number of severely delinquent mortgage accounts increased 15 percent in one year, according to a National Score Index® study conducted by Experian Consumer DirectSM, the leading provider of online direct-to-consumer credit reports, scores and monitoring products. 

“Changes in the housing market have affected many homeowners across the nation, with consumers in some states showing a significant increase in severely delinquent mortgage accounts,” said Ty Taylor, group president of Experian InteractiveSM. “Delinquent accounts can have a negative impact on a consumer’s credit score which could lead to higher interest rates when trying to refinance a current home loan, obtain a new loan or other lines of credit.”

The national average credit score for those with a severely delinquent mortgage account was 599 in February 2008, compared to 605 in February 2007. Conversely, the average credit score in February 2008 for those with a mortgage account with no delinquencies was 750. Severely delinquent mortgage accounts include charge-offs, short sales, foreclosures, repossession, collections, voluntary surrender and bankruptcy.

The study also found that:

  • The average mortgage balance for those with a severely delinquent mortgage account was $131,699 in February 2008, compared to $124,465 in February 2007
  • The states with the most severely delinquent mortgage accounts include California (12.4 percent of mortgage accounts are severely delinquent), Florida (8 percent of mortgage accounts are severely delinquent) and Texas(6.3 percent of mortgage accounts are severely delinquent)
  • Washington D.C. had the lowest average credit score for those with a severely delinquent mortgage account at 583

More information can be found at www.NationalScoreIndex.com. This study used Experian data from February 2007 and February 2008.

Experian’s National Score Index
Experian’s National Score Index study is based on a nationwide sampling of 2 million consumer credit files. Using the PLUS Score® model, the national average credit score for September to October 2007 was 692. In November 2007 it was 693 and December 2007 to February 2008 it was 692. Experian’s National Score Index Web site is updated monthly with the most recent Experian data on U.S. consumers’ credit and is a powerful indicator of the nation’s overall financial health. In addition to providing average credit scores for the nation, regions, states and local areas, the National Score Index monitors several other components of consumer credit behavior, including average debt, credit utilization, late payments and credit inquiries.

About Experian Consumer Direct
Experian Consumer Direct is part of Experian Interactive and a market leader for online credit reports, scores and monitoring products delivered directly to consumers through Web sites such as www.FreeCreditReport.com and www.FamilySecure.com. Among its products, the business provides consumers with instant access to their credit report and credit score, plus credit monitoring products that monitor all three national credit reports daily and include fraud resolution. Experian Consumer Direct has established integrated, co-branded partnerships with leading online financial destinations that provide consumers with a broad range of comprehensive online financial products and information essential to managing one’s financial life. For more information, visit www.experian.com.

About Experian
Experian® is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors. 

Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 36 countries worldwide, supporting clients in more than 65 countries. Annual sales are in excess of $3.8 billion.

For more information, visit the Group’s Web site on www.experiangroup.com.

Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.

Kelly Poffenberger
Experian Public Relations
1 949 567 7634 Telephone
kelly.poffenberger@experian.com Email

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