Carey, Edwin L.||Casebier, Eleanor
M.S. (Master of Science)
College of Business
Housing--Finance; Loans; Personal; Mortgages
The problem of this investigation is to examine, analyze, and evaluate the delinquent loans on nonfarm residential structures consisting of single-family units held by one of the largest savings and loan association in the nation. In order to analyze the delinquent loans a basis of comparison was needed so that criteria could be established. This was accomplished by taking a systematic random sample of the non-delinquent loans and comparing them with the universe of delinquent loans. Further, an intensive analysis of the delinquent information was made to determine common characteristics of delinquent borrowers, and if possible propound some reasons for the mortgage loan delinquencies. Also, interviews were conducted with selected management members of a large metropolitan savings and loan association. A summary of the data provides the following profile of a "typical" delinquent account. In all probability he is a person between the ages of 35 to 39 with an occupation of salesman, skilled laborer, or self employed who earns in the vicinity of $10,000 a year, and has four or more dependents. Also, he probably gave no references but if he did they tended to be auto finance or small loan companies. Further, he obtained an appraisal equal to or less than the purchase price of the home and procured a loan between $17,500 and $24,999 with a loan maturity of from 15 to 29 years. He probably has repaid less than 20 per cent of the original loan balance and has little more than his original equity in the house. His monthly payments are between $110 and $169 per month. In addition, his purpose in making the load may have been to refinance his present loan. He is probably three payments or less in arears and has excessive obligations or an improper regard for his obligations. furthermore, he is uncooperative in attempting to remedy the delinquency.
Brewer, Robert E., "Mortgage credit risk factors affecting loan delinquency" (1963). Graduate Research Theses & Dissertations. 4043.
vii, 65 pages
Northern Illinois University
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