F e d e r a l R e s e r v e B a n k o f K a n s a s C i t yS e p t e m b e r 2 0 1 0 F e d e r a l R e s e r v e B a n k o f K a n s a s C i t y4 t h Q u a r t e r 2 0 1 2

c o n s u m e r c r e d i t r e p o r t o k l a h o m a • fourth quarter 1

SummaryAverage consumer debt in Oklahoma

increased significantly in the fourth quarter by $260 to $14,320, and increased consistently over the past year for a total rise of 5.6 percent (Chart 1). Previously, consumer debt had fallen steadily as households pared balance sheets following the recession. Still, average consumer debt in Oklahoma was the lowest in the District along with Nebraska, which had the same average debt level (Chart 2). Revolving debt has continued to fall, including in the fourth quarter. Consumer delinquencies also continued to fall, in line with national delinquency rates, with the exception of student loans, where the delinquency rate remained among the highest in the nation (Chart 3). But the student loan delinquency rate has fallen significantly in Oklahoma over the past year. Still, consumer delinquencies were much higher than average consumer delinquencies in the District. Mortgage delinquencies were the highest in the District, although they remained moderately below U.S. rates (Chart 4). Mortgage delinquencies were especially high in the northeastern part of the state, including the Tulsa metro area (Map).

In This Issue: A Look at Mortgage Delinquencies

Past due mortgages peaked at a relatively high rate by District standards in early 2010 and have fallen off since then. But the rate of decline has been more gradual than in other District states and in the U.S. as a whole (see District report). Both serious delinquencies and foreclosures peaked very late compared to most District states and with the U.S. as a whole, and thus have had little time to improve significantly.

$4,000

$8,000

$12,000

$16,000

$20,000

$4,000

$8,000

$12,000

$16,000

$20,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Consumer Debt (excludes first mortgage)

Revolving Debt

U.S.

OK

U.S.

OK

Four-quarter moving average

$4,000

$8,000

$12,000

$16,000

$20,000

$4,000

$8,000

$12,000

$16,000

$20,000

U.S. District States CO KS MO NE NM OK WY

4th Quarter, 2011 4th Quarter, 2012

Four-quarter moving average

Chart 1: Average Debt Per Consumer

Chart 2: Average Debt Per Consumer

�onsumer �redit�eport �klahoma

Source: Federal Reserve Bank of New York Consumer Credit Panel/Equifax.Notes: Excludes first mortgage. A first mortgage represents the primary note on the home and typically is not used to purchase consumer goods.

Source: Federal Reserve Bank of New York Consumer Credit Panel/Equifax.Notes: Excludes first mortgage. A first mortgage represents the primary note on the home and typically is not used to purchase consumer goods.

F e d e r a l R e s e r v e B a n k o f K a n s a s C i t y - Te n t h D i s t r i c t4 t h Q u a r t e r 2 0 1 2

2

CONSUMER CREDIT REPORT �klahoma

c o n s u m e r c r e d i t r e p o r t o k l a h o m a • fourth quarter

Chart 3: Average Consumer Delinquency Rates

Chart 4: Mortgage Delinquencies

3.1%

9.7%

1.8%

5.7%

3.0%

15.2%

1.8%

5.7%

102.4

80.3

25

50

75

100

125

150

175

200

4%

8%

12%

16%

20%

U.S. OK

Four-quarter moving average

Auto (percentage of

outstanding loans)

Student Loan (percentage of

outstanding loans)

Bank Card (percentage of

outstanding accounts)

Any Account (percentage of

outstanding accounts)

Bankruptcy Filings Per 10,000 Households

(annual rate)

Sources: Federal Reserve Bank of New York Consumer Credit Panel/Equifax and the Administrative Office of the U.S. Courts.Notes: At least 30 days past due. “Any Account” includes accounts not otherwise reported in the chart, such as first mortgages. Estimates of households are updated in the second quarter.

10.8%

7.8%

10.0%

9.3%

10.2%

6.6%

4.0%

5.3% 5.0%

5.5%

2%

4%

6%

8%

10%

12%

2%

4%

6%

8%

10%

12%

U.S. District Oklahoma Oklahoma City Tulsa

Past Due Seriously Delinquent

Source: Lender Processing Services Inc. Notes: Figures represent the share of outstanding mortgages. “Past due” represents mortgages that are 30 days or more delinquent, including those in foreclosure. “Serious delinquncies” represent mortgages that are 90 days or more past due or in some stage of the foreclosure process.

F e d e r a l R e s e r v e B a n k o f K a n s a s C i t y - Te n t h D i s t r i c t4 t h Q u a r t e r 2 0 1 2

3

CONSUMER CREDIT REPORT �klahoma

c o n s u m e r c r e d i t r e p o r t o k l a h o m a • fourth quarter

Map: Serious Delinquency Rates by County

Chart 5: Mortgage Delinquency Trends in Oklahoma

Source: Lender Processing Service Inc. Note: Serious delinquencies represent mortgages that are 90 days or more past due or in some stage of the foreclosure process.

10.8% 10.0%

3.1% 2.9%

5.4% 5.3%

0%

2%

4%

6%

8%

10%

12%

0%

2%

4%

6%

8%

10%

12%

Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

Past Due

Foreclosure

Seriously Delinquent

Share of outstanding mortgages

Source: Lender Processing Services, Inc. Notes: Past due represents mortgages that are 30 or more days delinquent, including those in foreclosure. Serious delinquncies represent mortgages that are 90 or more days past due or in some stage of the foreclosure process.

The Consumer Credit Report series is published quarterly by the Federal Reserve Bank of Kansas City to provide a summary of consumer credit standing in each state of the Tenth District, which comprises Colorado, Kansas, western Missouri,

Nebraska, northern New Mexico, Oklahoma and Wyoming. For questions or comments, contact Kelly Edmiston, senior economist, at kelly.edmiston@kc.frb.org.

TexasOsage

Ellis

BeaverKay

Cimarron

Caddo

Le Flore

Woods

McCurtain

Grant

Grady

Major

Atoka

Kiowa

Creek

Bryan

Pittsburg

Harper

Custer

BlaineDewey

CraigAlfalfa

Garfield

Lincoln

Carter

Noble

Washita

Garvin

Tillman

Logan

Woodward

Pushmataha

Coal

Greer

Adair

Payne

Love

Mayes

Hughes

Roger Mills

Rogers

Comanche

Latimer

Beckham

Jackson

Cotton

Canadian

Stephens

Kingfisher

Choctaw

Haskell

Jefferson

Pontotoc

Muskogee

McIntosh

Johnston

SequoyahOklahoma

Ottawa

Wagoner

Tulsa

Delaware

Cherokee

Nowata

Pawnee

McClain

Okmulgee

Seminole

Harmon

Okfuskee

Murray

PottawatomieCleveland

Marshall

Washington

Legend

<1%

1%-2%

2%-4%

4%-6%

6%-8%

>8%

Insufficient Data