S&P/Experian Index Shows Mortgage Defaults Down 45% from 2009

Data through June 2010, released Tuesday by Standard & Poor's and Experian points to a declining trend in consumer default rates, with a reduction in first mortgage past dues leading the drop. Based on data extracted from Experian's database of approximately $11 trillion in outstanding loans, first and second mortgage default rates were 3.3 percent and 2.4 percent, respectively, as of the end of last month. The companies say default rates on first mortgages are down 45 percent from a year ago; second mortgage defaults have dropped 44 percent. The S&P/Experian consumer credit default indices are calculated based on data extracted from Experian’s consumer credit database, which is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian’s data repository covers approximately $11 trillion in outstanding loans sourced from 11,500 banks and mortgage companies.