USA Credit Climate: Loan Credit Default Rates Hit Pre-Recession Lows

Posted by Joachim Bartels | Oct 28, 2012 | Uncategorized | 0 |

Consumer credit defaults reached new lows in September that were last seen prior to the recession, according to data released by S&P Dow Jones and Experian.

First mortgage default rates for consumers decreased from 1.40% in August to 1.36% in September. This rate has either gone down or been flat for nine consecutive months, which represents an overall positive sign for the housing industry. Meanwhile, at 0.64%, the second mortgage default rate also fell to the lowest amount in its eight-year history. A year ago, this index was sitting at 1.32%.

Another loan type looked at in the monthly report includes bank cards, which declined 7 basis points to a mark of 3.70%. Only the auto loan default rate increased, from 1.09% to 1.11%, month-over-month. Overall, the national composite was down month-over-month from 1.50% in August to 1.46% in September.

Source: iCopyright

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Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

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