Delinquencies for closed-end residential property loans were down in the fourth quarter of 2017, according to the latest Consumer Credit Delinquency Bulletin
from the American Bankers Association (ABA).
Home equity loan delinquencies fell from 2.42 percent in the third quarter to 2.28 percent in the fourth, while mobile home delinquencies fell from 4.97 percent to 4.48 percent and property improvement loan delinquencies fell from 1.08 percent to 1.04 percent. The composite ratio, which the ABA uses to track delinquencies in eight closed-end installment loan categories, fell 4 basis points to 1.64 percent of all accounts.
Among open-end loans, however, home equity line of credit delinquencies rose 8 basis points to 1.16 percent of all accounts, holding just under their 15-year average of 1.16 percent.
“The positive trajectory of home-related delinquencies goes hand-in-hand with a growing economy and an improving housing market,” said James Chessen, ABA’s Chief Economist. “Rising property values boost wealth, increase confidence in the ability to meet future obligations and give homeowners an extra incentive to stay current.”