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ATLANTA — Continuing a pattern discovered by the two other
major credit reporting agencies as well, Equifax's latest monthly National
Consumer Credit Trends Report showed auto loan delinquencies are trending
lower.

Equifax indicated the rate of July auto loan delinquencies 60
days or longer dropped by 35 percent year-over-year, part of a string of
notable dollar-based declines.

Analysts also reported:

—Consumer finance 60-day plus delinquency rates declined 23
percent.

—Bank credit card 60-day plus delinquency rates declined 21
percent

—First mortgage severe derogatory rates (primarily loans
transitioning to real estate owned (REO) status) rates declined 17 percent.

—First mortgage 30-day plus delinquency rates declined 15
percent

—Home equity revolving 30-day plus delinquency rates
declined 7 percent.

Equifax also determined that accompanying the improving
delinquency rates is the rise in new credit, which increased 13 percent from
year-to-date in May of last year ($305 billion) to May of this year ($348 billion).
The firm mentioned the highest new credit increase was seen with bank credit
cards (21 percent versus the same period a year ago), which went from $58.1
billion through May of last year to $72.9 billion through May of this year.

"Consumers continue to improve their credit management,
through higher monthly payments on card accounts, refinancing of existing
mortgage debt at lower rates and lower delinquency rates pretty much across
the board," said Equifax chief economist Amy Crews Cutts.

"Growth in total credit is consistent with the overall
improvement in the economy — slow, but steady — with the exception of mortgage
debt which is declining overall," Crews Cutts continued.

"The decline in mortgage debt is due to loans converting to
real estate owned at the end of the foreclosure process, homeowners paying down
debt faster through cash-in refinancing, or shortening of the mortgage term as
well as borrowers curtailing the debt by adding a bit extra to their payment
each month," Crews Cutts added.

In stark contrast to overall improvements in consumer
repayment behavior, Equifax acknowledged student loan delinquencies and
write-offs have increased significantly during the past 12 months. The
movements include:

—Write-off rates among student loans increased more than 29
percent month-to-month from June to July 2012.

—Student loan 60-day delinquency rates increased more than
14 percent year-to-year in July.

—Student loan balances increased $58.5 billion
year-over-year in July.

—The total number of student loans has increased nearly 24
percent from July of last year (89 million) to July of this year (116 million).

—At $9.3 billion, student loan write-offs year-to-date
through July are 10 percent higher than same time a year ago ($8.4 billion).

—Severe derogatory balances, the major component of
write-offs, on student loans year-to-date through July ($7.3 billion) are 14
percent higher than same time a year ago ($6.3 billion).

"Student loans is one area of lending not affected by
tighter underwriting standards since the start of the recession," Crews Cutts
explained.

"The investment in higher education pays off over a person's
lifetime, while the tuition cost has to be paid up-front, leading to big demand
for student loans," she continued. "Unfortunately, the current job market has
not been kind to new graduates and their student loans start to come due once
they graduate — if they don't have a job by the time the first installment is
due, they can find themselves in quite a jam."