St Casimirs Mortgage Minute

Loan Delinquencies Drop in Nearly All Categories

Delinquencies fell in nine of 11 loan categories in the second quarter, according to the ABA Consumer Credit Delinquency Bulletin that was released today. Delinquencies rose only for mobile home loans and non-card revolving loans.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 6 basis points to 1.57 percent of all accounts -- well below the 15-year average of 2.32 percent. Meanwhile, bank card delinquencies fell one basis point to 2.43 percent of all accounts, also well below their 15-year average of 3.79 percent.

ABA Chief Economist James Chessen attributed the improving delinquencies to strong job growth, which he called the “most important factor behind keeping delinquencies at these historically low rates.” He added that “continued vigilance by consumers in managing their debt is the best protection against rising delinquencies.”

--ABA Daily Newsbytes