As performance on first mortgages has shown a significant improvement from a year ago, serious delinquency on second mortgages has deteriorated — though it remains well under 1 percent.
Consumer loan delinquency of at least 90 days was 1.34 percent in January. The rate reflects overall performance on auto loans, bank cards and first and second mortgages.
The past-due rate improved by a single basis point compared to a month earlier. Delinquency was 29 BPS better than a year earlier.
The statistics were based on the S&P/Experian Consumer Credit Default Indices.
Among the five biggest cities, Miami’s delinquency rate was worst at 2.61 percent — though that was a sizable improvement from 2.74 percent at the end of December.
Los Angeles’ rate of 1.07 percent was the lowest.
New York’s rate jumped 11 BPS to 1.49 percent.
“The severe weather conditions afflicting the country impacted economic activity,” David M. Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, said in the report. “Retail sales were down and the labor market conditions were mixed in January data. Overall economic activity is still sub-par.
“Against this background, consumer default rates have stabilized at levels similar to those seen before the financial crisis.”
Ninety-day delinquency on just first mortgages was 1.26 percent at the end of last month, a basis point below the level at the end of last year.
First mortgage performance has improved from the same point in 2013, when the rate of seriously late payments was 1.58 percent.
A 4-basis-point drop in 90-day delinquency on second mortgages left the rate at 0.72 percent as of Jan. 31.
But serious delinquency on second mortgages has worsened from 0.69 percent as of Jan. 31, 2012.
