Last week, Susan Fahy, EVP and Chief Digital Officer at VantageScore spoke with National Mortgage News to discuss subprime mortgage delinquencies trending upward, according to VantageScore’s October 2023 CreditGauge.
“The use of VantageScore credit scores has grown 30%, far outpacing our competitors. That’s because VantageScore offers the most predictive, reliable and innovative credit scores for lenders, capital markets, and consumers. VantageScore 4.0 also scores 33 million more people than traditional models, which means banks can safely lend to more people, including fast-growing, traditionally ‘credit invisible’ demographics, such as communities of color.
2024 will be another banner year for VantageScore, as the FHFA has announced an accelerated timeline for implementation of VantageScore-backed, GSE-funded mortgage collateral. This will open the door for millions of new applicants, potentially creating up to $1 trillion in mortgage lending originations. Our momentum has never been greater than it is right now.”
The article notes the trend of small increases in mortgage delinquencies identified in the October 2023 CreditGauge analysis, most prominently seen in the early-stage phase, but apparent across all past-due categories.
While mortgage delinquency measures have been mixed recently, with some emphasizing that upticks tend to be in the early-stage phase, tiny increases across all past-due categories in VantageScore’s data suggest they’re becoming increasingly consistent.
Late-stage subprime mortgage delinquencies in particular have shown a very small but steady uptick recently, rising to 2.69% in October from 1.77% a year earlier and 2.63% the previous month.
Read more here: https://www.nationalmortgagenews.com/news/subprime-mortgage-delinquencies-drift-higher-than-last-year