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Thursday, June 27, 2013 - 9:15am
Borrowers with poor math skills made up a higher percentage of homeowners in foreclosure during the housing bust than those who were skilled at arithmetic, that's according to a new study which found math-challenged borrowers were five times more likely to default on their loans.
The study examined several hundred borrowers who held mortgages issued in 2006 and 2007, right before the mortgage meltdown.
Of the study subjects, 25-percent of the borrowers who scored in the lowest bracket for math skills had defaulted on mortgage payments within five years of getting the loans.
Meanwhile, only five-percent of those in the top tier for math skills defaulted.