Bank card delinquencies edged up 1 basis point to 2.48 percent of all accounts in the second quarter. They remain significantly below their 15-year average of 3.70 percent.
According to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin, delinquencies in closed-end loans fell slightly in the second quarter, driven by a drop in home equity loan delinquencies and continued financial discipline by consumers.
Delinquencies fell in three of the 11 individual loan categories compared to the previous quarter.
The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 3 basis points to 1.35 percent of all accounts – a record low. This also marked the third year that delinquency rates were below the 15-year average of 2.21 percent.
The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
Home equity loan delinquencies fell 4 basis points to 2.70 percent of all accounts, which helped drive the composite ratio down. Other home related delinquencies increased slightly, with home equity line delinquencies rising 6 basis points to 1.21 percent of all accounts and property improvement loan delinquencies rising 2 basis points to 0.91 percent of all accounts. Home equity loan delinquencies dipped further below their 15-year average of 2.85 percent, while home equity line delinquencies remained just above their 15-year average of 1.15 percent.
The second quarter 2016 composite ratio is made up of the following eight closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
Home equity loan delinquencies fell from 2.74 percent to 2.70 percent.
Mobile home delinquencies fell from 3.41 percent to 3.17 percent.
Personal loan delinquencies fell from 1.44 to 1.43 percent.
Direct auto loan delinquencies rose from 0.81 percent to 0.82 percent.
Indirect auto loan delinquencies rose from 1.45 percent to 1.56 percent.
Marine loan delinquencies rose from 1.03 percent to 1.23 percent.
Property improvement loan delinquencies rose from 0.89 percent to 0.91 percent.
RV loan delinquencies rose from 0.92 percent to 0.96 percent.
In addition, ABA tracks three open-end loan categories:
Bank card delinquencies rose from 2.47 percent to 2.48 percent.
Home equity lines of credit delinquencies rose from 1.15 percent to 1.21 percent.
Non-card revolving loan delinquencies rose from 1.57 percent to 1.65 percent.
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