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Group Vice President of Transunion’s financial services business unit Steve Chaouki on home mortgages and the current state of housing.
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I'm sure are -- Back to some good news home price is up from march April.
There's -- good news when you look April compared to last April price is actually dropped one point 9%.
-- -- understand the good news first because markets that -- hit the hardest by the mortgage crisis like San Fran Phoenix they actually saw biggest.
-- -- gains but is it enough to arrive the rest of the country.
Steve -- group vice president of trans union's financial service business unit joins us now to answer that question because it's all about confidence into the -- right.
So we see a couple areas doing better does that get everybody else off their -- out there.
So I think was good to see some markets doing better and to see you the beginning so bottom here you know one or few data points don't really make a trend.
Yeah and a Obama as we've been like you know bubbling along -- -- it seems to really long time now.
-- we have been in the impact of that has been very interesting you know we tend to say the credit markets at Trans Union and we've done a couple studies that show some very instinct findings there are new given the new housing restoration over the last night here.
A lot of it has to do with mortgages right.
That's right for example we found that consumers are now paying there are loans first before the housing crisis people always paid their mortgage first -- -- second credit cards third.
Well over the the past few years that shifted in people are nothing there are loans first credit cards second and now more just lack.
We shouldn't blows my mind because that -- its first thing at every month is my mortgage I mean I don't it's wild is it because that people know.
Thanks take forever to foreclose these days so -- Pam -- I think it's a part that but it's also more impart some a look at the -- equity in their house than that really protecting it that but they need their cars to get to work.
Also the cars are worth cars are worth more today than they really never been used car values are are pretty much near all time highs so we're seeing consumers wanting to hold on to that asset and protective.
And you know what you can buy food for your kids -- your credit card can do that with your house unfortunately so I could see how you would -- paying your mortgage off.
The mortgage situation there isn't that part of the problem why people -- buying homes these days because.
You can get a loan and even if you use the loan is available to you it's so hard to come up with a 20%.
-- I think that's right to -- a lot of issues that make it difficult to buy a home these days and I think that's impacting a lot of other things.
We're seeing things like loan modifications we just did -- study on loan modifications looking how that affects consumers' ability to borrow.
In the future we found some very interesting things.
For example consumers have a loan modification performed much better on future loans and visiting get -- out of my.
-- it was really interesting because all right so they.
Significantly outperformed multiple delinquency default serves -- -- that kinda sounds like they're deadbeats anyway.
Well say you know pretty much to get to the situation me alone -- recently at least you have to have via default are no longer have which is -- -- -- -- loans breast.
And you see the folks actually go ahead and try to get the -- you know they're putting in an effort to get -- -- they're actually trying to right their ship.
You see the other people maybe they've given up maybe they think their house has so far underwater that there's no light at the end of the tunnel.
So that they're in a different circumstance but we found that just the act of getting a mod and having a month.
Macy perform a lot better in the future long for example -- all along those who have mas or 50% if it yourself -- delinquencies trying to get your house in order -- ten seconds is it gonna get better.
With time.
That's -- Steve we've been here and I for a long time thank you Steve --
