Mortgage Defaults Drop in February

March 16, 2011 (Brian Moore)

First mortgage defaults rates declined to 2.45 percent in February 2011, which was14.04 percent lower than January 2011 and 43.27 percent lower than February 2010 according to the Standard & Poor/Experian Consumer Credit Default Indices.

Second mortgage defaults also experienced a decline to 1.46 percent, which was 3.41 percent lower than the previous month and 52.10 percent lower than the year before.

"Default rates continue to fall across all major categories and year over year across the five high-lighted cities. The overall trend has lasted a number of months now, reflecting improved consumer health and the appearance of continued economic recovery," says Craig Feldman, Director at S&P Indices.

Consumer credit defaults showed a decline in monthly default rates across all credit lines which included not only first and second mortgages, but also bank cards and auto loans.

Among the five major Metropolitan Statistical Areas reported each month in the report, Los Angeles experienced a steady decrease in defaults this month to 2.70 percent. New York and Miami followed the trend with default rates of 2.53 percent and 6.05 percent. Dallas had the largest decrease in default rates to 1.78 percent. Chicago had an increase in defaults to 2.83 percent.

The table gives summary results for February 2011 for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision.

S&P/Experian Consumer Credit Default Indices National Indices
Index	February Index Level	Change from January, 2011	Change from February 2010
Composite	2.54	-12.50%	-42.28%
First Mortgage	2.45	-14.04%	-43.27%
Second Mortgage	1.46	-3.41%	-52.10%
Bank Card	5.67	-7.50%	-32.92%
Auto Loans	1.58	-0.05%	-36.96%

Source: S&P/Experian Consumer Credit Default Indices
Data Through: February 2011

The second table provides the S&P/Experian Consumer Default Composite Indices for five selected metropolitan statistical areas:

Metropolitan Statistical Area	February Index Level	Change from January, 2011	Change from February 2010
New York	2.53	-4.43%	-38.35%
Chicago	2.83	2.86%	-38.05%
Dallas	1.78	-13.96%	-43.17%
Los Angeles	2.70	-2.05%	-55.15%
Miami	6.05	-6.32%	-51.08%

Source: S&P/Experian Consumer Credit Default Indices
Data Through: February 2011

Tags: Standard & Poor/Experian, consumer credit default indices, first mortgage defaults, second mortgage defaults, default rates