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This year, credit unions have captured additional market share and economic conditions have shown some positive signs of leveling off. TransUnion's annual credit forecasts released earlier this month show that national mortgage loan delinquencies (the ratio of borrowers 60 or more days past due) will drop nearly 3 percent by the end of 2010 to 6.39 percent from an expected 6.56 percent at the conclusion of 2009. This projected decrease in mortgage delinquencies would end a trend that included unprecedented year-over-year increases of 43 to 54 percent between 2006 and 2009. For credit cards, 2010 delinquency rate forecasts (the ratio of borrowers 90 days or more delinquent on one or more of their credit cards) indicate the nation will experience a third straight year-over-year decrease from 1.07 percent at the end of 2009 to an estimated 1.04 percent by the end of 2010.
While delinquencies are expected to decrease slowly at the national level, it is important to also understand the impact of market trends at the regional level. For example, some states will see double-digit decreases in delinquency while others will have increases. To address the ever-changing market, there are inherent steps that must continue to be taken to successfully manage accounts and prevent losses.
The key to a successful 2010 is to understand how external and internal trends are affecting your credit union—and your members—and adapt accordingly. Combine market intelligence with more frequent portfolio reviews. Get a more complete view of your accounts by accessing consumer credit and behavior changes. And use that insight to develop more effective portfolio management strategies to optimize member relationships and reduce risks.
David Dodson is vice president of credit unions at Chicago-based TransUnion. He can be reached at email@example.com.
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January 4, 2010
7/26/2012 04:07 PM
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