Growing risk has led to a sharp increase in collateral scrutiny by mortgage lending institutions during the last 12 months, a consumer Web site reported today.

Risk scores nationwide increased by 14.3 percent during the October-to-April period compared to the prior six-month period. Louisiana showed a 55.9 percent risk increase, followed by Hawaii with 51.7 percent and New Hampshire with 42.3 percent, according to, which provides online access to sales trends and property value estimates.

Lending institutions review home loan applications for applicant financial risk and property risk. The elements on the collateral side include property and neighborhood characteristics, as well as local market trends, flipping and default activity.

“Much of the normal market risk has been absent, or at least obscured, the last three years because of the strength of the real estate market. Now that sales are slowing and appreciation rates are coming down, risk is re-emerging, said Mike Ela, president.

While collateral risk increased in 37 states, it declined in Alaska, Wyoming and nine other states. Risk was flat in Montana and Massachusetts.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Black Friday starts now! We've got great deals on Inman Connect New York in-person and virtual tickets. Register now×
Cyber Week Sale: Get 1 year of Inman Select for $75.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription