Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Americans default rather than make good

Staff Reporter 1 minute read

American borrowers are choosing to default on their loans rather than make good on their missed repayments.

A recent release by ratings agency Fitch said ‘cure-rates’ – the percentage of delinquent loans that return to normal payments each month – has fallen to 6.6 per cent from an average of 45 per cent in the six years to 2006.

According to the release, 25 per cent of the ‘cured’ loans were first modified by the lenders so that the borrowers were paying a reduced monthly repayment.

The Obama administration recently implemented a program that encourages all lenders to modify troubled loans and allow struggling borrowers to reduce their monthly repayments. However, the success of the program has so far been limited.

Americans default rather than make good
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
mortgage document sign ta 1 in 5 borrowers lies on loan applications

One-fifth of Australians have admitted to not telling the whole t...

money au ta Judo Bank valued at $1.9bn after equity raise

The SME challenger bank has announced its latest equity funding r...

gentlmen handshake Choice announces commercial white label service

The aggregator has partnered with a finance brokerage to add a co...