WASHINGTON (MNI) – Consumer Credit defaults for first and second
mortgages, and auto loans declined in April but bank card defaults
increased according to a report jointly released by S&P and Experian
Tuesday.

“Consumer defaults continue to moderate in the key big ticket items
of first and second mortgages and auto loans,” David Blitzer, Managing
director and Chairman of the Index Committee at S&P Indices said
Tuesday.

However he warned the uptick in bank card defaults could spell
trouble for other industries.

“The bank card series may raise concerns for many consumer related
businesses as well as for consumer oriented lending institutions,” he
said.

The Consumer Credit Default Report is a joint venture with S&P and
Experian designed to measure defaults on consumer balances in important
loan areas.

The report found defaults were down from April to March for first
mortgages by 6.0%, second mortgage by 11% and auto loans by 17.5%.

The bank card category showed an increase in defaults of 2.4%.

On a regional basis, the report recorded data for five major metro
areas — New York, Chicago, Dallas, Los Angeles, and Miami which all
showed a decrease of defaults from March to April.

“Regional variations in default rates are typical. The sharp
declines in Los Angelas and Miami reflect a somewhat more stable, though
still weak, housing market as well as some overall economic improvements
in recent months,” Blizter said.

The next report will be released June 15.

S&P/Experian Consumer Credit Default Indices Summary:

S&P/Experian Consumer Credit Default Indices
National Indices

April March April
Index to to
April March
——————————————————–
Composite 3.85 -6.00% -27.00%
First Mortgage 3.71 -6.20% -31.10%
Second Mortgage 2.49 -11.00% -45.40%
Bank Card 9.14 2.40% 19.30%
Auto Loans 1.94 -17.50% -15.30%
——————————————————–

Metropolitan Statistical Area April Index Level

S&P/Experience Consumer Default Composite Indices
Five selected metropolitan statistical areas

April March April
Index to to
April March
———————————————————
New York 4.13 -3.40% -12.10%
Chicago 4.30 -3.60% -5.80%
Dallas 2.71 -13.20% -14.70%
Los Angeles 5.14 -11.10% -37.80%
Miami 10.42 -7.90% -40.50%
———————————————————

** Market News International Washington Bureau: 202-371-2121 **

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