Global| Jul 08 2010U.S. Loan Delinquencies Fall
by:Tom Moeller
|in:Economy in Brief
Summary
The American Bankers Association reported yesterday that the percentage of most types of closed-end loans behind on payments declined in March. Leading the decline was the drop in delinquent auto loan payments. Just 1.79% of loans [...]
The American Bankers Association reported yesterday that the percentage of most types of closed-end loans behind on payments declined in March. Leading the decline was the drop in delinquent auto loan payments. Just 1.79% of loans made directly from the bank to the customer were late versus 1.94% at the end of last year and 2.03% at the end of 2008.The figure had reached a peak of 3.12% in February '09. Three percent of indirect loans extended by dealerships were delinquent.At the high end of the loan-delinquency scale was education and home equity financing.
For open-end loans, bank credit-card financing was behind to the greatest degree. However, the 3.88% of loans that were late compared to a peak 5.05% at the end of the last recession. The notion that individuals are paying off and cutting up credit cards seems real. Running counter to the trend of improved credit usage were the figures on non-card revolving credit. For these loans, a near-peak 1.63% were behind in receiving payments.
The loan delinquency figure are available in Haver's DLINQ database.
Risk of Slower Growth Ahead from the Federal Reserve Bank of Dallas Can be found here.
| Loans Past Due As A Percentage Of Outstanding Loans(End of Period) |
March | February | January | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|
| Closed-end Loans | ||||||
| Personal | 3.61 | 3.73 | 3.89 | 3.63 | 2.88 | 2.48 |
| Direct Auto | 1.79 | 1.86 | 1.95 | 1.94 | 2.03 | 1.90 |
| Indirect Auto | 3.03 | 3.16 | 3.25 | 3.15 | 3.53 | 3.13 |
| Property Improvement | 1.40 | 1.47 | 1.38 | 1.63 | 1.75 | 1.81 |
| Home Equity | 4.12 | 4.13 | 4.22 | 4.32 | 3.03 | 2.39 |
| Education | 7.88 | 6.65 | 6.64 | -- | 6.93 | 3.39 |
| Open-end Loans | ||||||
| Home-equity | 1.81 | 1.87 | 1.92 | 2.04 | 1.46 | 0.96 |
| Bank card | 3.88 | 4.09 | 4.22 | 4.39 | 4.52 | 4.38 |
| Non-card revolving | 1.63 | 1.66 | 1.44 | 1.46 | 1.35 | 1.12 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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