ABA reports 3Q’17 consumer credit delinquencies mixed

Delinquency numbers from the third quarter of 2017, released by the American Bankers Association, reveal a slight uptick in delinquencies for closed end loans such as personal and auto loans, and a modest decline in certain open-end loans, such as credit cards. Overall, delinquencies fell in 5 and rose in 5 of the 11 individual consumer loan categories tracked.

Delinquencies fell in one home-related category and rose slightly in two others. Home equity loan delinquencies fell 8 basis points to 2.42 percent of all accounts, dipping under their 15-year average of 2.93 percent. Home equity line of credit delinquencies, meanwhile, edged up 1 basis point to 1.08 percent of all accounts and remain below their 15-year average of 1.18 percent. Property improvement loan delinquencies rose 13 basis points to 1.08 percent of all accounts, but also remain well below their 15-year average of 1.32 percent.

Bank card delinquencies fell 5 basis points to 2.62 percent of all accounts, well lower than their 15-year average of 3.62 percent. Non-card revolving loan delinquencies fell to 1.57 percent from 1.59 percent.

Delinquencies in indirect or third-party auto loans were unchanged at 1.84 percent of all accounts, well below their 15-year average of 2.19 percent. Delinquencies in direct auto loans rose 8 basis points to 1.12 percent of all accounts, but remain well under their 15-year average of 1.55 percent.

“Delinquencies remained remarkably low for this late in the economic cycle,” said James Chessen, ABA’s chief economist in a news release; Chessen projects stable delinquency rates in the foreseeable future, pointing to continued economic growth and consumer discipline as contributing factors.

The ABA report defines a delinquency as a late payment that is 30 days or more overdue.