Skip to main content

National Default Rates Stabilize in May

Jun 19, 2013

Data through May 2013, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed no change in national default rates during the month. The national composite was at its post-recession low of 1.42 percent in May 2013. The first mortgage default rate was 1.31 percent in May; it showed no change since April. The bank card rate was 3.63 percent in May vs. 3.61 percent in April. “Consumer credit quality looks healthy," says David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices. “The first mortgage default rates remained at its post-recession low of 1.31 percent in May. Bank card rates were marginally higher while the second mortgage and auto loans were a touch lower this month. The second mortgage default rate hit a new low of 0.60 percent since the indices began in 2004. All loan types remain below their respective levels a year ago." The second mortgage and auto loan default rates decreased in May posting 0.60 percent and 1.04 percent; they were marginally down from their respective 0.62 percent and 1.07 percent April levels. “Three of the five cities we cover saw decreased default rates in May–Chicago and Dallas were down by 15 basis points each and Miami was 33 basis points lower," said Blitzer. "Chicago and Miami reached post-recession lows. New York was up 26 basis points and Los Angeles rose nine basis points. For the first time since 2006 New York had the highest default rate of 2.04 percent among the five cities covered. Dallas hit a historic low of 0.85 percent and has the lowest rate among the five cities. All five cities remain below default rates they posted a year ago, in May 2012.”
About the author
Published
Jun 19, 2013
About $18.6 Million Severance Payout For First American Ex-CEO Kenneth DeGiorgio

Rather than a brusque exit, high-performer DeGiorgio eligible to catch a soft breeze off into the horizon

Apr 23, 2025
New VantageScore Credit Model Aims To Boost Predictive Performance

Also, company’s pilot program gives nonprofit lenders access to modern credit scoring while helping them maintain sound lending practices

Apr 22, 2025
Mortgage Women Leadership Council Breaks 500-Member Benchmark

Becomes nation’s largest organization for women in the industry

Apr 21, 2025
Tug-Of-War Continues Between President Trump, Fed Chair Powell Over Rate Cuts

President’s April 17 social media post expresses growing impatience with Federal Reserve Board not cutting rates

Apr 18, 2025
Mortgage Insurance Premium Tax Write-Off Back On The Table

Bipartisan bill would restore, expand expired MIP deduction, aiming to ease homeownership costs for millions

Apr 15, 2025
FBI Boston Warns Of Growing Title Fraud

Fraudsters forging documents to sell properties or take out mortgages on them, FBI says

Apr 14, 2025