Analysis of Loan Delinquencies in HUD's (Department of Housing and Urban Development's) Mortgage Assignment Program

摘要

This study examines HUD's single family mortgage assignment program in relationship to the excessively high rates of default and foreclosure experienced by mortgagors accepted into the program. A random sample of 300 mortgagors is examined to determine if specific variables associated with these mortgagors can be identified as accurate predictors of payment performance after acceptance into the program. The independent variables chosen were: mortgagor's income, mortgagor's debt other than the mortgage, number of wage earners and dependents in the household, number of years paid on the mortgage, and the type of payment plan the mortgagor is on. The dependent variable selected was the payment status of the account. The results indicate that all of the independent variables taken together account for only 5 percent of the total variance in the dependent variable. The three significant independent variables were: suspended payment plan, the number of dependents, and wage earners in the household.