| Quote of the Month:
"MBA reports that its seasonally adjusted delinquency rate for mortgages on one-to-four-unit residential properties in the second quarter 2003 was 4.52%, down 15 basis points from the same quarter a year earlier."
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October 2003
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| Mortgage Delinquency Rates Improve |
| The worst of the impact of the recent recession appears to have already been felt in portfolios. The first piece of good news we can report in this issue is an improved delinquency picture for the mortgage loan market.
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| Credit Card Performance Worsened in Second Quarter
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| In contrast to the improving picture in mortgage markets reported in the previous article, continued fallout from the recent economic downturn is evident in the credit card segment of the industry. |
| Delinquency Rates Drop at Commercial Banks
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| Delinquencies on loans held by U.S. banks show a somewhat more encouraging trend than observed in the rest of the market. The most recent Federal Reserve data on delinquencies at the 100 largest U.S. banks reveal a promising downward trend thus far in 2003. |
| Bankruptcy Growth Slows a Bit |
Another sign that economic growth may be lifting more consumers out of financial problems is that the growth in bankruptcy filings has slowed a bit in recent weeks.
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| Hispanics Largest Minority Group |
| If you provide financial services to consumers, it is worth noting the latest report from the Census Bureau. It concludes that Hispanics are "The nation's largest minority community." |
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| American Express Plans to Issue Bank Cards |
| A three-judge panel of the U.S. Court of Appeals for the Second Circuit issued a ruling in mid-September that upheld an October 2001 decision that Visa and MasterCard can no longer bar member banks from offering cards with other brands, including Discover and American Express. However, in the short run nothing will change until Visa and MasterCard have exhausted their rights to further appeal. |
| MasterCard Transactions Grow |
| In a recent press release, MasterCard International announced continued growth in its global charge volume for the first six months of 2003. |
| Credit Card Solicitations Down in Second Quarter |
| Large bank card issuers apparently throttled back their direct mail solicitations in the second quarter 2003. Two market research firms that track credit card solicitations reported a sharp decline in direct mail volume. |
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| Debit Card Rewards Slashed |
| U.S. Bank has reduced its debit card rewards program by cutting its cash rebate to 0.25 percent, down from rebates as high as one percent. |
| Banks Plan to Issue More Debit and Stored Value Cards |
| The latest survey by the American Bankers Association reveals that banks are responding rapidly to the dynamic financial market. We provide a very brief summary. |
| European Payment (Debit) Cards |
| The July-August issue of European Card Review carries an interesting review by Richard Rolfe of the past and future growth of debit, or POS cards. The issue is important because debit cards are the most frequently used card in Europe. |
| Overseas Markets for Consumer Financial Services |
| If you believe that the U.S market for consumer financial services is rather saturated, you might want to consider overseas opportunities. A press release from the ACA provides an excellent summary of a survey by American Express of 5,000 consumers in five countries. |
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| Identity Theft |
| We last wrote about identity theft in March, but more evidence of the growing problem has been compiled. The Federal Trade Commission released a survey in September reporting that over the past five years, 27.3 million Americans have been the victims of identity theft, nearly 10 million just in the past year. |
| FCRA Bills Advance in Congress |
| Both the U.S. House and Senate took major steps in September to strengthen the Fair Credit Reporting Act, and preserve its core features from erosion by conflicting state and local privacy statutes. |
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