22
FIRST MORTGAGE
DEFAULT RATE
UP FOUR BASIS
POINTS
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 July 2022 which
aims to represent a "comprehensive" measure
of changes in consumer credit default rates and
shows that the composite default rate rose four
basis points to 0.57% from 0.53% in June.
Breaking the total default rate down, the
first mortgage default rate was up four basis
points to 0.42%. the highest default rate since
September 2020. Additionally, the bank card
default rate fell 11 basis points to 2.44% and
the auto loan default rate was four basis points
higher at 0.66%
Four of the five major metropolitan
statistical areas showed higher default rates
compared to last month. Miami had the largest
increase, up 14 basis points to 1.13%. Chicago
rose nine basis points to 0.67%. Los Angeles
was six basis points
higher, at 0.52%,
while Dallas
increased five basis
points to 0.62%.
New York dropped
six basis points to
0.65%.
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.
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