By Ronald D. Orol, MarketWatch
WASHINGTON (MarketWatch) — Delinquency rates for consumer loans fell in all eleven loan categories tracked by the American Bankers Association in the fourth quarter, including lower delinquencies for home-equity loans and bank loans, according to a report released Thursday by the ABA.
Bank-card delinquencies — tracking late payments at least 30 days overdue for credit cards provided by a bank — dropped to 3.17% in the fourth quarter form 3.25% in the third quarter.
Meanwhile, delinquencies for home-equity loans fell to 4.08% from 4.12%.
ABA Chief Economist James Chessen said the news was very encouraging. However, he added that “troublesome” performance in housing-related loans is keeping overall delinquency rates elevated.
“The housing sector continues its painful adjustment, and it will take a long time before delinquency rates return to normal,” he said.
The ABA’s composite ratio, which tracks delinquencies in eight closed-end installment loan categories, declined to 2.49%, compared with 2.59% in the third quarter. Read about how consumer delinquencies mixed in third quarter
Among eight types of closed-end loans, there were decreased delinquencies in all categories:
•Delinquencies on home-equity loans fell to 4.08% from 4.12%.
•Personal-loan delinquencies fell to 2.87% from 3.00%.
•Indirect auto-loan delinquencies fell to 2.47% from 2.60%.
•Marine-loan delinquencies fell to 1.57% from 1.72%.
•RV-loan delinquencies fell to 1.31% from 1.38%.
•Direct auto-loan delinquencies fell to 1.06% from 1.15%.
•Delinquencies on property-improvement loans fell to 0.93% from 0.96%.
•Mobile-home-loan delinquencies fell to 3.76% from 4.08%.
And among three types of open-end loans, there were decreased delinquencies in each category:
•Bank-card delinquencies dropped to 3.17% from 3.25%.
•Delinquencies on home-equity lines of credit fell to 1.69% from 1.93%.
•Non-card revolving-loan delinquencies fell to 1.40% from 1.43%.
