Source: bloomberg.com
The American Bankers Association (AMA) is reporting that home equity loan delinquencies set a record and consumers racked up unprecedented unpaid credit card bills.
Home equity loan delinquencies rose to 3.2 percent on all accounts from 3.03 percent in the fourth quarter. Meanwhile late payments on home-equity lines of credit jumped to record levels of 1.89 the group reported, Tuesday.
According to James Chessen, AMA’s cheif economist, “The number one driver of delinquencies is job losses, which we’ve seen build and build”.
Unemployment in June in the U.S. stood at a 26-year high of 9.5 percent and the Obama administration is predicting that this could reach 10 percent before year end, notwithstanding the stimulus plan.
The AMA is reporting that delinquencies rose in five areas: home equity loans, direct auto loans, recreational vehicle, mobile home and personal loans.
Delinquencies on U.S. Home-Equity Loans Reach Record
