Wednesday, November 2, 2011
LIFE AFTER FORECLOSURE ITS IMPACT ON PAYMENT PATTERNS AND HIDDEN OPPORTUNITIES
There is a temporal element to looking across your enterprise; what may have been a profitable product or strategy in the past may not be so going forward. For example, a foreclosure in 2009 was driven by much different forces than a foreclosure in 2005. As an enterprise, how are you looking at the impact these different forces have had on risk mitigation or collections? Are you still managing risk or collection processes looking through a 2005 lens? In this session, TransUnion will provide an overview of market trends that illustrate the importance of an industry perspective when setting strategy. As a particular application, TransUnion will present research into the effects of foreclosure on consumer credit risk at both a national and regional level.
- Are consumers who stopped paying their mortgages through the recession uniformly poor credit risks today?
- Have their payment patterns changed, and what does that mean to your business?
- Do they have access to liquidity now to pay other past due accounts?
- Are there perhaps pockets of opportunity in the market?
- How might one incorporate this kind of knowledge into the underwriting process, portfolio management or collections?
An improved understanding of the choices consumers make puts this industry in a better position to accurately gauge risk and opportunity, and respond appropriately.