Unemployment Key to Mortgage Defaults, Expert Says
June 26 2006
While rising interest rates may spell less disposable income for
consumers, mortgage defaults are unlikely to climb appreciably unless
unemployment rates start to rise across the country, said Andy Chawla,
senior vice president and director of enterprise risk management with
the Impac Companies, a Newport Beach, Calif. Market research and
“You will see some areas
that will suffer some deterioration,” in mortgage performance
but those likely will be pockets where unemployment is rising, Chawla
told Credit & Collection Risk while he attended the Mortgage
Bankers Association conference in Chicago this week.
mortgage originations could slow anywhere from 25 percent to 50 percent
as housing markets cool going into early 2007, he predicted.
was demonstrating its iMap software which rates market conditions
across the country looking at such variables as unemployment and loan