Thoughts on Loss Severity
For Liquidations that occurred in 2014, loans with last paid to date prior to 2009 have experienced an average loss severity of 90% or greater. When the last paid to date is prior to 2008, the average loss severity has been greater than 100%. Other factors contribute to loss severity, but the longer the loan has been delinquent, the greater the amount of advances and accrued interest that has to be taken out of Net sale proceeds.
As we feel this is an important statistic to know, our FirstSight Analytic reports will now track serious delinquency by last paid to date.
Contact us at 203-276-0672 to become a client and access all reports and attachments.