Mortgage and home equity lines of credit delinquencies are predicted to rise, according to bank risk executives polled by the Professional Risk Managers' International Association, in a survey sponsored by FICO.
For the third straight quarter, risk managers don’t expect delinquency rates for mortgages, home equity lines, credit cards, auto loans, small business loans and student loans to improve any time soon, according to the poll.
“Overall, delinquency predictions paint a somewhat pessimistic picture,” the report states. “Risk managers continue to express concern that delinquency rates are high and likely to grow higher.”
About half, 47.1%, in the poll taken in the fourth quarter, believe mortgage delinquencies will increase, either somewhat or significantly - up slightly from what was predicted during the previous quarter’s survey.
Also, slightly more of those polled in the fourth quarter, expect home equity line delinquencies to increase - 44.3% compared with 40% in the previous quarter.
Looking ahead, while nearly one third of respondents think it’s “likely” that the U.S. will have negative GDP growth in 2012, more than half - 51.7% - think it’s “unlikely.”
