S&P/Experian Consumer Default Indices lower in June
While consumer credit is improving overall, the default rate keeps increasing in one of the five major metros. Overall consumer credit performance, including the performance of first mortgage liens, continued to improve for the fourth consecutive month, according to data from S&P Dow Jones Indices and Experian, which includes information from the largest banks and mortgage companies, covering approximately $11 trillion in outstanding loans sourced from 11,500 lenders.
The S&P/Experian Consumer Credit Default Indices show the composite rate of consumer credit defaults for June 2020 was at 0.66%, down 12 basis points from the index level reported in May, and 17 bps lower than in June 2019.
The first mortgage default rate fell 11 bps compared to the previous month, to 0.41%, and 18 bps from a year ago. Similarly, the auto-loan default rate dropped 16 bps, month over month to 0.40%. While the bankcard default rate fell 17 bps, to 4.23% from May but still is higher than 3.90% in June 2019.
Four out the five major metropolitan statistical areas (MSAs) showed lower default rates compared to last month. Chicago showed the largest decrease, down 14 bps to 0.69%, followed by Dallas, down 13 bps to 0.66%.
The index level improved in New York as well, but only by nine bps from May, down to 0.74%, while Miami was three basis points lower, at 1.40%. Los Angeles was the only MSA with a higher default rate, marking a month over month increase of two bps, to 0.72%, and up to 11bps higher than a year ago.
The June 2020 results for the S&P/Experian Consumer Credit Default Indices “are not seasonally adjusted,” the report notes.
Valligent Technologies hires former CoreLogic exec
Valligent Technologies, the creator of a proprietary virtual inspection and appraisal process, has hired Walter Allen as EVP of digital transformation. Prior to joining Valligent, Allen was an executive with CoreLogic Solutions. During his 13 years with CoreLogic, he developed strategies for capital markets clients like Morgan Stanley and Deutsche Bank, and later for federal agencies in the government solutions group, where he worked with FHFA, OCC, HUD, Freddie Mac and others.
The technology behind Valligent’s virtual appraisal enables an inspector to complete a comprehensive inspection without being at the property. With the time saved in visiting the property, the virtual appraisal can be completed in as little as one day, rather than the typical traditional appraisal delivery times that range from five to ten days.
“Valligent’s proprietary virtual inspection and appraisal process answers a longstanding mortgage industry problem: how to drastically expedite the appraisal workflow with a faster, more efficient valuation that doesn’t sacrifice quality,” said Allen. “Surprisingly, more companies haven’t adopted it, but that’s about to change. I’m extremely energized by this opportunity.”
BancorpSouth grants $65K to Catholic Charities Diocese
BancorpSouth Bank subsidiary, BXS Community Fund LLC has donated $65,800 to Catholic Charities Diocese of Jackson, Mississippi, to benefit families seeking health, housing or other types of assistance across 65 counties.
“Catholic Charities has been an important part of helping those in need in Mississippi for 183 years,” said Don McCarver, BancorpSouth president of the Houston, Mississippi market. “We’re happy to provide this donation that’ll support the great work it does across the state.”
Historically, the mission of the organization has been to help those who are unable to help themselves, the poor and vulnerable, especially children, women, and families. During its last fiscal year, Catholic Charities served approximately 16,000 Mississippi residents in counties throughout its locations in Jackson, Natchez and Vardaman.
“On behalf of the advisory board, volunteers and staff of the Vardaman office of Catholic Charities, I thank BancorpSouth for supporting our efforts to continue our mission,” said Danna Johnson, director of Catholic Charities’ Vardaman office and member of the bank’s Community Advisory Council in Calhoun County, Mississippi.
Especially when serving communities and the many children we touch through our Children Enrichment Educational program,” Johnson added. “We are grateful for the bank’s generosity, trust and commitment to our mission.”
With $21 billion in assets, the Tupelo, Miss., headquartered bank operates more than 310 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, and Illinois.
Merger creates insurance firm Unitas Financial Services
Golden Eagle Insurance and Innovative Risk Solutions have merged their specialty insurance businesses under a new company, named Unitas Financial Services, to be completed and effective by January 1, 2021. Together they bring nearly 100 years of industry experience under one roof.
The name “Unitas,” or oneness in Latin, was chosen because both founding companies serve financial institutions and real estate investors, and share the same goal, to build “close and long-lasting relationships” with community lenders through improved products, systems, and claims, according to a statement.
The ownership team consists of Bill Jones, president of Golden Eagle Insurance, Lisa Cooper, president of Innovative Risk Solutions, and Greg Shimkus, executive vice president of Innovative Risk Solutions, who already have teamed up on several projects in the past 20 years.
Unitas will provide insurance solutions and systems, but also plans to partner with independent insurance agencies and brokers, said Lisa Cooper, co-owner and president of Unitas Mortgage Division. “We see a void in the market where community-minded lenders who strive to give their clients quality products and service do not get quality products and service from their vendors.”
The merger of the two companies is the next step at the right time, the company said. Unitas’ headquarters will be in Johnstown, Ohio, the home of Golden Eagle Insurance since its inception in July 1995.
Other office locations include the headquarters of Innovative Risk Solutions in DeBary, Fla., Dublin, Ohio, Ashland, Ken., Greensboro, N.C., Allen, Texas, Fort Lauderdale, Fla., Encampment, Wyo., and a new office opening in Denver, Col., this summer. More regional offices will open around the country in 2021 and beyond, Unitas said.
Unitas co-owner and president Bill Jones said the merger is “a perfect fit” because owners were already doing business together and had a mutual goal. “Community lenders have a lot of advantages to offer over the large big box banks, and we have those same advantages to offer community lenders over the big box national brokers and insurance companies.”
Founded 25 years ago, Golden Eagle Insurance has provided loan portfolio protection and other insurance solutions to financial institutions, but specialized in Blanket Insurance. Its flagship product, Blanket 360, fully protects lender portfolios while creating operational efficiencies.
Innovative Risk Solutions opened doors almost 15 years ago in March 2006. It specialized in insurance solutions for both financial institutions and private real estate property portfolios offering popular products such as Lender Placed Hazard, Flood Protection, and its Master Real Estate Investor Insurance Program, which has helped many real estate investors streamline their hazard insurance processes.
Core strengths include the ability to increase efficiency in risk transfer programs by clearly defining the exposure and expertise in streamlining the management of lender-placed and investor insurance programs.
Company executives said they appreciate their clients past and present. Same as its founding companies Unitas will focus on personal touch, long term relationships service, said Greg Shimkus, co-owner and president of Unitas Specialty Division. “Every individual on our team has the authority to make decisions and do whatever is required to ensure we exceed client expectations.”
Amilda is an experienced financial journalist and branding content strategist with a keen interest in how entrepreneurs turn brilliant ideas into products and services that help advance business acumen and improve people’s lives in unprecedented ways. She has covered the mortgage market for over 15 years.