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7 FIRST MORTGAGE DEFAULT RATE AT HIGHEST LEVEL SINCE SEPTEMBER 2020 Credit rating agency Experian, along with the S&P Dow Jones Indices, has released its latest monthly iteration of its Consumer Credit Default Indices Report for June 2022 which aims to represent a "comprehensive" measure of changes in consumer credit default rates and shows that the composite default rate rose two basis points to 0.53%. Breaking the total default rate down, the first mortgage default rate was up two basis points to 0.38%, the highest default rate since September 2020. Additionally, the bank card default rate rose six basis points to 2.55%, and the auto loan default rate was one basis point higher at 0.62%. Four of the five major metropolitan statistical areas as defined by the U.S. Census Bureau showed higher default rates compared to last month. Miami had the largest increase, up 15 basis points to 0.99%. Chicago and Dallas each rose five basis points, to 0.58% and 0.57% respectively. Los Angeles was one basis point higher at 0.46%. New York City dropped six basis points to 0.71%. Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each month at 9:00 a.m. ET. ey are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien, and second mortgage lien. e Indices are calculated based on data extracted from Experian's consumer credit database. is database is populated with individual consumer loan and payment data submitted by lenders to Experian every month. Experian's base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders. Journal Compiled by the DS News Staff TA K E A L O O K I N S I D E T H E N U M B E R S DATA BITS Source: Redfin, "Pandemic Homebuying Hotspots With Steep Price Increases Most Susceptible to Housing Downturn in a Recession" I N S I D E T H E J O U R N A L | I N F O S T R E A M | T H E D I G I TA L E D G E | M O V E R S & S H A K E R S According to J.D. Power's 2022 Mortgage Servicer Satisfaction Study, New American Funding ranked highest for the year, followed by Rocket Mortgage, Huntington National Bank, Regions Mortgage, and Chase rounding out the top 5. A study conducted by the Joint Center for Housing Studies of Harvard University's Remodeling Futures Program found that one-third of lower-income homeowners— those who make less than 32,000 annually, representing 48 million households—spent nothing on home maintenance in 2019. 1. ROCHESTER, NEW YORK 2. KANSAS CITY, MISSOURI 3. BUFFALO, NEW YORK 4. BOSTON, MASSACHUSETTS 5. CINCINNATI, OHIO 6. CLEVELAND, OHIO 7. EL PASO, TEXAS 8. MONTGOMERY COUNTY, PENNSYLVANIA 9. PHILADELPHIA, PENNSYLVANIA 10. AKRON, OHIO HOUSING HOTSPOTS LEAST SUSCEPTIBLE TO A RECESSIONARY HOUSING DOWNTURN 1. RIVERSIDE, CALIFORNIA 2. BOISE, IDAHO 3. CAPE CORAL, FLORIDA 4. NORTH PORT, FLORIDA 5. LAS VEGAS, NEVADA 6. SACRAMENTO, CALIFORNIA 7. BAKERSFIELD, CALIFORNIA 8. PHOENIX, ARIZONA 9. TAMPA, FLORIDA 10. TUSCON, ARIZONA HOUSING HOTSPOTS MOST SUSCEPTIBLE TO A RECESSIONARY HOUSING DOWNTURN CITY RANK CITY RANK Breaking the total default rate down, the first mortgage default rate was up two basis points to 0.38%. the highest default rate since September 2020. SVP and Chief Economist, Fannie Mae Page 24 The Exchange WITH Douglas G. Duncan