Total delinquency was up 1 basis point over first quarter; however, delinquency for the year is still the lowest in the post-recession era.
Delinquency for credit cards also was up at midyear. The only loan product to record such an increase, credit card delinquency was up 7 basis points to 1.15%. Credit card delinquency has been on the rise for the past four years, but the speed appears to be slowing. Credit card delinquency increased 7 basis points year-over-year compared to 15 basis points from second quarter 2016 to second quarter 2017.
At 2.87%, net charge-offs for credit cards was the highest it’s been since year-end 2011.
In addition to credit cards, auto loans are the other major component of consumer lending. Credit unions reported a drop in delinquency of 4 basis points, to 0.55%, in auto loans. Delinquency for new and used auto loans both dropped — 2 basis points to 0.36% and 5 basis points to 0.67%, respectively. New auto loans had the lowest delinquency of any credit union loan product.
Like delinquency, charge-offs for auto loans were also down. Charge-offs were down 1 basis point to 0.44% for new auto loans and down 5 basis points to 0.75% for used auto loans.
New auto loans had the lowest delinquency of any product, 0.35%, in the second quarter of 2018.
First mortgage delinquency continued its post-recession decline. Since 2011, first mortgage delinquency has dropped 1.7 percentage points to 0.52% as of June 30, 2018. Real estate lending comprised the majority of the loan portfolio with first mortgages accounting for 41.0% of the industry’s loan portfolio as of June 30. At 0.48%, other real estate delinquency improved 7 basis points since second quarter 2017.
First mortgage delinquency has dropped 1.7 percentage points since second quarter 2011.
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