Mortgage Delinquencies Creep Up Again
April 15, 2014
Reports are surfacing again of more home owners falling behind on their mortgage payments, a reversal from the dropping numbers seen over the last several quarters. Delinquency rates are also on the rise for credit card and auto loan borrowers, according to the Experian-Oliver Wyman Market Intelligence Reports.
More mortgages were 30 to 59 days past due in the fourth quarter of 2013, rising to 2.13 percent from 2.05 percent at the end of 2012, according to the report.
A new survey by FICO reports that nearly half of bank-risk professionals expect delinquency rates on all consumer loans to reach their highest levels this year since late 2011.
"We've seen concerns about delinquencies creeping up for a few quarters," says Andrew Jennings, FICO's chief analytics officer. "These numbers mean more people are gaining access to credit, but we need to keep a close eye on the risk levels of these new loans. If delinquencies reach an uncomfortable level, we may see lenders pull back again."
Source: “Missed Mortgage Payments Are Back on the Rise,” Credit.com (April 14, 2014)
Updated: June 20, 2018