The national credit picture took an upturn in May, as mortgage and consumer credit default rates ebbed from April numbers, according to the latest S&P Dow Jones/Experian Consumer Credit Default Indices. Tuesday’s indices reported that, nationally, first mortgage defaults dropped six points to zero point 63 percent in May, led by improved default rates in New York, Dallas, Chicago, and Los Angeles.
The second mortgage default rate for May was reported at zero point 51 percent, which was a month-over-month decline of seven basis points. Overall consumer credit defaults nationwide were much improved in May, dropping five points to a composite rate of zero point 81 percent. It remains well below rates seen before the recession.
HUD has awarded more than 42 million dollars in housing counseling grants to hundreds of national, regional, and local organizations in order to prevent foreclosures, according to an announcement from HUD on Tuesday. More than 1 point 4 million households will be assisted with the funds leveraged by HUD. The counseling that the money provides will help homeowners find housing, make more informed housing choices, or remain in their current homes if they are facing foreclosure.