Credit card delinquencies are likely to remain low, even as riskier consumers open more card accounts, according to an annual forecast from TransUnion, a consumer credit reporting company.
Meanwhile, the mortgage delinquency rate is expected to fall to 5.06 percent by the end of next year, from an estimated 5.32 percent at the end of this year. (The delinquency rate is the ratio of borrowers who are at least 60 days past due on their payments. The mortgage delinquency rate peaked at the end of 2009 at 6.89 percent.)
Mortgage delinquency rates, considered a precursor to foreclosure, will fall in 34 states and the District of Columbia, TransUnion predicted.
While delinquency rates are moving in the right direction, they are dropping slowly and remain well above the historic “normal” rate of roughly 2 percent. The slow pace of improvement seems to be tied to a generally slow foreclosure process for mortgage holders who have been delinquent for a long time, said Steve Chaouki, group vice president in TransUnion’s financial services unit. The company’s analysis suggests that the delinquency rate would fall to about 2.5 percent — near normal — if borrowers who haven’t made a mortgage payment in over a year are excluded from the calculation.
The outlook remains good for credit cards, he said. Credit card delinquency rates — the ratio of borrowers who are at least 90 days behind on one or more cards — are expected to remain low, even though they may rise to 0.87 percent at the end of next year from 0.83 percent now. That’s still remarkably low. From 2000 to 2011, the rate has averaged 1.24 percent in the final three months of the year.
‘It is disingenuous to accuse everyone who calls for restructuring as trying to break up the county. History tells us that that kind of cheap blackmail will not work as long as the underlying reasons for the agitations persist.’
‘The biggest challenge seems to be that we seem to be allowing moderate voices on this issue to be drowned out by the reckless utterances of a few rabble rousers on all sides who may be tools in the hands of those who do not wish this country well. These are some of the people who arrogate to themselves the toga of spokespersons of our diverse groups.’
-Ex VP Atiku Abubakar on Restructuring.
APC governors disagree with Oyegun on party convention, say convention can hold without Buhari
Real Reasons I Banned State University’s ASUU–Kogi Governor
Governors Forum set up C’ttee for state police
Boko Haram: Osinbajo orders Nigeria’s military, intelligence agencies to rescue abducted women
© CybokNews 2016 | All Rights Reserved