Released: July 03, 2010

When borrowers can pay but don’t

Source: Kenneth R. Harney, Washington Post (Free Registration)

With tougher mortgage underwriting rules a virtual certainty under Congress’s financial reform legislation, lenders have begun confronting still another vexing issue: Can homebuyers who have high credit scores be trusted not to pull the plug - strategically default - when the economy hits a rough patch and home values tank?

New research based on data from 25 million active consumer credit files suggests the answer just might be no.

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