Credit unions servicing a significant number of mortgages mightbenefit from a new tool to help determine which mortgage holderswere at the highest risk for choosing to default, FICO said.

Strategic defaults have become a significant problem formortgage servicers and holders and particularly for FICO, parent ofthe FICO credit score. Research has shown that the borrowers mostlikely to walk away from their mortgage loans tend to be otherwisesterling examples of good credit and money managementpractices.

The company found that strategic defaulters tend to be moresavvy managers of their credit than the general population, withhigher FICO scores, lower revolving balances, fewer instances ofexceeding limits on their credit cards and lower retail credit cardusage.

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