Walk-aways leading to big changes for all borrowers' credit scores: "'The driving force behind [the score revisions],' said Sarah Davies, VantageScore's senior vice president for analytics and research, is the 'significant change in consumer credit repayment behavior' that began during the housing bust and recession.
Not only are borrowers who previously were rated outstanding credit risks far more likely to default today, she said, but many homeowners are defying long-standing credit industry assumptions by going delinquent on their first mortgage payments while simultaneously continuing to pay their credit card balances and second mortgages on time. Strategic defaults - walkaways - by high-score borrowers also have been an unexpected and shocking development, she said."
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