|Banks reported record delinquency on home-equity products.
Home-equity loan delinquency of at least 30 days was 3.03 percent in the fourth quarter 2008, according to the American Bankers Association's Consumer Credit Delinquency Bulletin. The fourth-quarter rate was the highest on record.
HEL delinquency rose from 2.63 percent in the third quarter and 2.39 percent on Dec. 31, 2007.
Late payments on home-equity lines-of-credit were 1.46 percent during the latest period -- also a record. HELOC delinquency was 1.15 percent in the third quarter and 0.96 percent in the fourth-quarter 2007.
Delinquency on property-improvement loans rose to 1.75 percent from the third quarter's 1.63 percent, but mobile home loans saw a 12 basis point decrease to 2.96 percent.
The ABA's composite ratio -- which reflects delinquency from eight categories of consumer credit -- rose 32 basis points to a record 3.22 percent on a seasonally adjusted basis.
The trade group attributed the deterioration to 2 million fourth-quarter job losses as "the U.S. economy is experiencing the worst recession since the mid 1970's." The rapid economic decline is hitting all regions and most business sectors.