Delinquencies for credit cards provided by banks fell significantly in the first quarter of 2019, while the composite index of closed-end loans remained unchanged, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin released today.
With high quality loans and low delinquencies, banks are positioned well to handle a slowdown in the auto lending market.
The good news is that both borrowers and lenders continue to exercise discipline and consumers are still in very strong financial shape.
Consumer credit delinquencies were mixed in the fourth quarter of 2018, with the composite index of closed-end loans falling and certain open-end loan categories rising, according to ABA’s Consumer Credit Delinquency Bulletin.
Outstanding household debt increased by 0.2 percent in the fourth quarter of 2018, rising by $32 billion to land at $13.54 trillion, the Federal Reserve Bank of New York reported today.
Bank card delinquencies resumed a slow return toward normal levels in the third quarter of 2018 but remain low by historical standards, according to ABA’s Consumer Credit Card Delinquency Bulletin released today.
The number of home loans backed by Fannie Mae and Freddie Mac that are 60 or more days past due fell from 1.2 percent to 1.1 percent at the end of the third quarter, according to the Federal Housing Finance Agency’s foreclosure prevention report released today.
The share of current and performing first-lien mortgages in the third quarter of 2018 was 95.4 percent, up from 94.8 percent a year ago, according to the Mortgage Metrics Report released today by the OCC.
Bank card delinquencies fell in the second quarter of 2018 after creeping up in the previous quarter, according to ABA’s Consumer Credit Delinquency Bulletin released today.
After falling in nearly every category the previous quarter, delinquencies in closed-end loans, such as personal or auto loans, rose across the board in the first quarter, as did bank card delinquencies, according to ABA’s Consumer Credit Delinquency Bulletin released today.