Even High-Score Borrowers at Risk of Mortgage Default

Blog#7
http://www.blogger.com/post-create.g?blogID=7081300636797387951

Description:
1) Credit Score-A credit score is the consistency of payments made on purchases on a credit card. How much you payoff reflects on the score.

2) Borrowers-Is individuals who borrow money in this particular article the definition means to borrow from an institution.

3) FICO-(Fair Isaac and Company) Company was made in the 1950's and it's purpose is to determine credit score availability and history.http://www.capital-connection.com/what-is-fico.html

Analysis:
The title of this article defines the whole article. Reports from FICO say that premium borrowers are more likely to default payments on there mortgages than there credit cards. In 2007 mortgage-defaults rates for high score borrowers was 0.08 percent versus 0.10 percent for bank cards.housing counselors suggest that the borrower having trouble with finances that cannot pay there mortgages, do this because they need to buy essential items like groceries. Ms.Bell from the FICO does not agree with the speculations of premium borrowers.Ms. Bell states that the problem with mortgages not being paid is mostly from abandon homes worth less than the mortgages.

Explanation:
What does this have to do with economics? We already have problems with the economy because people can no longer afford there credit bills let alone, mortgage on a house. So if we continue to see the loyal borrowers not paying off there bills we will be in an even bigger economic rut.

Prediction:
The FICO suggest that scores of 760 and higher are more than qualified for a mortgage from the bank. so if we can convince people to say on top of there credit payments and house payments, we will be on the rode to recovery. hence making the economy more strong and healthy.