ABA Survey: Fewer Late Payments Posted by AVCU on 11:42 AM

The Associated Press reports on a survey to be released by the American Bankers Association citing that late payments for most types of consumer loans decreased in the final quarter of last year. The survey shows loans that were 30 days or more past due fell in proportion to overall loans in eight of 11 categories tracked by the American Bankers Association's quarterly Consumer Credit Delinquency Bulletin. But housing-related loans showed mixed results–a sign that the housing market still lags the spreading economic recovery. Economists believe that modest job gains and improved consumer spending are signs of a economic turnaround.

Delinquencies on credit cards issued by banks fell substantially. The survey shows consumers were late on 4.39% of the card payments, down from 4.77 the previous quarter. Home equity lines of credit also showed signs of improvement; delinquent loans made up 2.04% of the money lent, down from 2.12%. Delinquencies also fell on loans for boats, RVs, mobile homes and home improvement. Delinquencies on auto loans from dealers held steady at 3.15%. And delinquency rates rose for home equity loans and non-card revolving loans. Even in categories where delinquencies fell, they remained well above historical averages. Delinquencies will likely remain above historical averages as long as unemployment remains high. "