Home » NEWS » ABA reports improved loan delinquencies

ABA reports improved loan delinquencies

WASHINGTON – Consumer loan delinquencies showed broad-based improvement for the third quarter in a row, a sign of continued modest improvement in the U.S. economy, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 21 basis points to 2.98 percent of all accounts from 3.19 percent of all accounts in the previous quarter.

Bank card delinquencies fell more than half of one percent to 3.88 percent of all accounts which is below the 15-year average (3.93 percent). This is the first time since the second quarter of 2002 that bank card delinquencies have fallen below 4 percent. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

ABA chief economist James Chessen said the improvements reflect concerted efforts by consumers to shore up their finances. “It’s clear that consumer balance sheets are improving. People are borrowing less, saving more and building wealth. These are all positive signs,” he said.

Chessen added that across-the-board improvements in housing-related loan delinquencies indicate stability is returning to the housing market. “This is the first inkling that stability is taking hold in the housing market, but the pace of recovery will still be long and drawn out,” Chessen noted.

Home equity loan delinquencies fell for the first time in two years to 4.12 percent of all accounts from 4.32 percent in the previous quarter. Home equity lines of credit delinquencies fell nearly a quarter percent to 1.81 percent of all accounts from 2.04 percent in the previous quarter.   Property improvement loan delinquencies fell to 1.40 percent of all accounts from 1.63 percent in the previous quarter.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Wally Northway

Leave a Reply