Difference between revisions of "Direct Default"
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== Definition == | == Definition == | ||
| − | '''Direct Default''' is a type of [[Delinquency]] profile and eventual [[Credit Event]] where the borrower (typically in [[Consumer Finance]] context) migrates into a [[Default Definition | defaulted state]] without any apparent attempt (by borrower and/or lender) to remedy the deteriorating delinquency status<ref>Public Policy Discussion Papers: "Reducing Foreclosures", Christopher L. Foote, Kristopher S. Gerardi, Lorenz Goette, and Paul S. Willen, Federal Reserve Bank of Boston, 2009</ref> | + | '''Direct Default''' is a type of [[Delinquency]] profile and eventual [[Credit Event]] where the borrower (typically in [[Consumer Finance]] context) migrates into a [[Default Definition | defaulted state]] without any apparent attempt (by borrower and/or lender) to remedy the deteriorating delinquency status<ref>Public Policy Discussion Papers: "Reducing Foreclosures", Christopher L. Foote, Kristopher S. Gerardi, Lorenz Goette, and Paul S. Willen, Federal Reserve Bank of Boston, 2009</ref>. |
In the context of a [[Roll Rates]] analysis, direct defaults are paths that exhibit direct progression from current to defaulted status, without any prior journey away from the current state. Accounts that do exhibit direct default give rise to a non-zero [[Cure Rate]] | In the context of a [[Roll Rates]] analysis, direct defaults are paths that exhibit direct progression from current to defaulted status, without any prior journey away from the current state. Accounts that do exhibit direct default give rise to a non-zero [[Cure Rate]] | ||
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== References == | == References == | ||
<references/> | <references/> | ||
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[[Category:NPL]] | [[Category:NPL]] | ||
[[Category:Transition Matrix]] | [[Category:Transition Matrix]] | ||
Latest revision as of 17:40, 16 May 2024
Definition
Direct Default is a type of Delinquency profile and eventual Credit Event where the borrower (typically in Consumer Finance context) migrates into a defaulted state without any apparent attempt (by borrower and/or lender) to remedy the deteriorating delinquency status[1].
In the context of a Roll Rates analysis, direct defaults are paths that exhibit direct progression from current to defaulted status, without any prior journey away from the current state. Accounts that do exhibit direct default give rise to a non-zero Cure Rate
See Also
References
- ↑ Public Policy Discussion Papers: "Reducing Foreclosures", Christopher L. Foote, Kristopher S. Gerardi, Lorenz Goette, and Paul S. Willen, Federal Reserve Bank of Boston, 2009
