Banks: Borrowers Improve Payment Records
Banks that write a majority of mortgages and other loans in the U.S. say that borrowers have improved their repayment records in the third quarter of this year.
In the third quarter, Bank of America saw the first decrease in the numbers of customers that were more than 90 days late paying home equity loans. Wells Fargo’s loss rate on its credit card loans declined to 10.9 percent from 11.6 percent.
JPMorgan Chase reported that in the third quarter, loan payments more than 90 days late declined to 2.8 percent from 3.3 percent in the second quarter.
“There seems to be stability in the environment in terms of consumer spending … that could be forming the base of a recovery,” says Jamie Dimon, CEO of JPMorgan Chase.
Source: USA Today, Pallavi Gogoi (10/30/2009)