Defaults edge up

by MPA16 Oct 2013

Mortgage default rates rose slightly in September, according to data released Tuesday.

The S&P/Experian Consumer Credit default Indices, which track consumer credit default levels, showed an increase in overall credit defaults in September, with the national composite at 1.38%, up from 1.34% in August.
Default rates for first mortgages crept up to 1.29% last month from 1.23% in August. Second mortgage also saw defaults increase, rising from 0.57% in August to 0.69% in September, according to the study.

Despite the slight default increase, consumer credit continues to look stable, according to David M. Blitzer, managing director and chairman of the Index Committee for the S&P Dow Jones Indices.

“Consumer credit quality continues to look healthy,” Blitzer said. “The indices remain at pre-financial crisis levels and are stable. … All loan types remain below their respective levels a year ago.“

COMMENTS

Poll

Is TILA-RESPA a good or bad thing long term?