Consumer delinquencies related to housing categories in the fourth quarter of last year have gone down significantly, and home values are rising steadily, according to the most recent American Bankers Association’s Consumer Credit Delinquency Bulletin.

The report had shown that home equity loan and line delinquencies are showing a downward trend for the first time since the recession. Home equity loan delinquencies have dropped 23 basis points to 2.68 percent of all accounts, and home equity line delinquencies are down by 13 basis points to 1.18 percent of all accounts. Property improvement loan delinquencies went up 5 basis points to 0.92 percent of all accounts.

Loan delinquencies

James Chessen, ABA’s chief economist had issued this statement along with the report:

“It’s been a long, rocky road, but home equity delinquencies have finally worked their way back to historical norms. The strong and consistent rise in home prices over the last three years has restored equity, which makes keeping loans current even more of a top priority for homeowners. With rising home equity and shrinking delinquencies becoming the status quo, banks are more willing to extend new home equity loans and lines to qualified borrowers.”

Here are the loan delinquency numbers by category from the ABA:

CLOSED-END LOANS

* Personal loan delinquencies fell from 1.52 percent to 1.44 percent.

* Direct auto loan delinquencies rose from 0.74 percent to 0.75 percent.

* Indirect auto loan delinquencies rose from 1.51 percent to 1.54 percent.

* Mobile home delinquencies fell from 3.59 percent to 3.16 percent.

* RV loan delinquencies rose from 0.95 percent to 0.96 percent.

* Marine loan delinquencies rose from 1.09 percent to 1.14 percent.

* Property improvement loan delinquencies rose from 0.87 percent to 0.92 percent.

* Home equity loan delinquencies fell from 2.91 percent to 2.68 percent.

OPEN-END LOANS

* Bank card delinquencies fell from 2.54 percent to 2.52 percent.

* Home equity lines of credit delinquencies fell from 1.31 percent to 1.18 percent.

* Non-card revolving loan delinquencies fell from 1.71 percent to 1.63 percent.

SOURCE: ABA

Erik Sandstrom
LoanSafe's Mortgage Expert
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