Home equity loan delinquencies hit a record high in the first quarter, according to the American Bankers Association.
In its consumer credit delinquency bulletin, the association said 3.52 percent of home equity loans were delinquent, a record high and 49 basis points greater than the same period a year ago.
Delinquencies on auto loans, RV loans and mobile home loans also increased during the quarter. Delinquencies on property improvement, indirect auto and marine loans decreased.
The association said the primary driver of loan delinquency is job loss. Job growth isn’t expected to improve “in the foreseeable future,” and delinquencies will continue to mount, the association said.
However, the association said it has noticed a trend of consumers cutting spending, lowering debt and saving more money.
