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Entries in Late Payments (4)

Wednesday
Dec072011

Number of Late Mortgage Payments Forecast to Drop in 2012

Hemera Technologies/Thinkstock(NEW YORK) -- More homeowners are paying their mortgages on time, according to TransUnion.

The credit reporting firm says just over 6 percent of borrowers are now at least 60 days behind on their mortgage payments, and that number is expected to drop.

"We're projecting that the number of people who are 60 plus days delinquent on their mortgage will drop from about 6 percent at the end of this year to about 5 percent at the end of next year," says Steve Chaouki with TransUnion.

Chaouki says the peak was reached during the worst of the recession two years ago.  Before then, the average late payment rate was under 2 percent.

Copyright 2011 ABC News Radio

Tuesday
Nov082011

Late Mortgage Payments Rise for First Time Since 2009

Hemera Technologies/Thinkstock(CHICAGO) -- Late mortgage payments are rising in the U.S. for the first time since the depths of the economic downturn.

The latest quarterly survey by the credit reporting firm TransUnion shows that the rate of borrowers who are 60 days or more past due rose to 5.88 percent -- up from 5.82 percent in the second quarter.

The third quarter figure marks the first time the national mortgage delinquency rate has increased since the last three months of 2009.

Despite "recent, relatively more conservative lending policies and the apparent stabilization of both home values and unemployment," Tim Martin, the group vice president of U.S. Housing in TransUnion's financial services business unit, says unexpected events led to this spike.

"[I]n the third quarter, the consumer was hit with several unanticipated shocks, including the U.S. credit rating downgrade, stock price declines, European debt concerns, stubbornly high unemployment, more downward pressure on home values and low consumer confidence.  All of this affects a borrower's net worth and desire, or ability, to continue making house payments -- especially if they are facing negative equity in their homes due to price depreciation," Martin wrote in a statement released Tuesday.

Copyright 2011 ABC News Radio

Tuesday
Oct182011

Late Payments on Credit Cards Jump in September

George Doyle/Thinkstock(NEW YORK) -- Call it a sign of troubling economic times: for the first time in more than two-and-a-half years, more consumers are falling behind making credit card payments.

Five of the six largest credit card issuing firms say the number of payments late by 30 days or more rose in September.

The rate of increases were all very small, but late payments -- or delinquencies -- are considered an indicator of potential defaults by consumers.  Until last month, the rate had been falling.

The banking industry is still recovering from a big rise in defaults during the 2008 financial crisis.

Copyright 2011 ABC News Radio

Tuesday
Aug162011

Late Payments on Credit Cards Fall to 17-Year Low

George Doyle/Thinkstock(CHICAGO, Ill.) -- Politicians in Washington may have a hard time figuring out how to handle the nation's debt, but it appears -- as individuals -- the nation is getting a grip on personal debt.

According to TransUnion, late payments on credit cards are down to the lowest level in 17 years, even though their use has increased. 

The credit reporting agency says the national credit card delinquency rate, which accounts for borrowers being 90 days or more past due, fell to 0.6 percent in the second quarter of this year.  That's the six straight quarter the rate has dropped.

While banks have tightened standards for approving credit cards, TransUnion says people are treating their debts more seriously and paying them off more quickly.

"National credit card delinquency rates have fallen to levels not seen since 1994 as consumers continue to tighten their spending," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.  "TransUnion believes that the recovering economy is only indirectly impacting delinquency rates.  More important and impactful to the decline in bank card delinquency are that consumers are using credit cards more responsibly; a large number of delinquent accounts have moved to charge-off status; and lenders remain conservative in their underwriting."

Copyright 2011 ABC News radio







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