Relevant:
- mortgage default rises 340 percent in regions with high home price depreciation and unemployment
- "Archaic" FICO Model Called Out by NAR. Credit Scoring Due Another Update
- FICO Spots Disturbing Trends in Consumer Credit Behavior
- The One Number You're Forced to Care About... Your FICO Score
- home price depreciation leading cause of mortgage default 1
2008-04-15 — blogspot.com
I would just say that what we are seeing is that when equity in the home approaches zero, behavior changes. And that's what the model tries to do is to then take that behavior along with house price depreciation and factor that into future losses.... their propensity to just default and stop paying their mortgage rises dramatically and I mean really accelerates up and it's almost regardless of how they scored, say, on FICO or other kinds of character, credit characteristics.
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