
Cure Rate When a mortgage holder gets behind on payments, they often "cure" the deficiency -- well, at least they used to. The cure rate in early 2007 was 45%; It recently fell to 6.6%. The cure rate is the ratio of the number of loans cured divided by the number of delinquent loans in the system. It is a measure of the percentage of loans each month that leave Shadow Inventory. It is a direct measurement of one of the methods of exiting the system -- the other being foreclosure. When a property goes delinquent, what isn't cured is a foreclosure. Cure rates are very low right now because there is so much shadow inventory in the system that…[READ MORE]