Quarterly delinquency declined on home equity loans -- the strongest sector within the consumer credit category, according to a banking industry report.
First quarter 30-day HEL delinquency was 1.94%, according to the American Bankers Association's Consumer Credit Delinquency Bulletin announced Tuesday. Home equity delinquency was 2.07% the prior period.
"Overall the financial picture is good, which is reflected in improved delinquencies in most consumer loan categories," said James Chessen, the group's chief economist, in the statement. "The [seasonally adjusted] composite ratio, which tracks late payments in eight types of closed-end installment loans, fell to 1.94 percent from 2.02 percent of accounts ... at the end of 2005."
Mobile home loan delinquency fell to 3.37% from 3.91%, according to the survey of more than 300 banks nationwide.
"Not since the Great Depression has the national savings rate remained below zero for so long," Chessen added. "Absent savings to cushion financial stress, some consumers end up missing a payment."