Consumers Cut Mortgage Debt At Year's End

Weeks after a number of similar reports indicated consumers made more timely payments to credit card lenders at the end of 2010, TransUnion announced Americans also increased the frequency with which they reimbursed lenders for outstanding mortgage debt during the fourth quarter. 

In TransUnion's quarterly analysis of trends in the mortgage industry, the credit reporting company found the rate at which borrowers were 60 or more days late on debt payments dropped to 6.41 percent.

This was a 0.47 percent drop from the 6.44 percent seen in the third quarter, and the smallest decline measured since the end of the recession, the report said.

"The current deceleration in falling mortgage delinquency rates is indeed concerning," said Tim Martin, group vice president of the U.S. Housing Market at TransUnion. "Although the increase in January's consumer confidence index is good news for the consumer … real estate prices as reflected by the Case Schiller Home Price Index have been consistently falling since the end of second quarter."

Despite the overall improvement, 33 states saw their delinquency rate increase from the previous quarter. As a result, some economists believe the overall late payment rate may not see big improvements until the end of 2011.