With the Economy Still on Life Support, How are Your Recoveries?

Economic results are out for July and the results are mixed at best. Consider the following updates:

• The unemployment rate slid from 9.5% to 9.4% prompting the Federal Reserve to voice optimism that the long decline of the US economy appears to have ended.
• The housing market is still slow, with a record number of foreclosure filings posted in July.
• Retail sales fell in July after two straight months of gains. Without car sales from the "Cash for Clunkers" program, the numbers would have been even worse. 
• Wages have fallen from last year’s levels, although fewer major U.S. employers are planning additional layoffs.

I could go on but you get the idea. In the ARM industry, agencies and credit grantors continue to experience lower liquidation rates compared to last year’s results generally across all asset classes and all stages of delinquency. Placement volumes are up. Those servicing later stage, lower balance and/or community accounts (i.e. healthcare, utility, and local government) are typically experiencing better liquidation results compared to those working fresh accounts, higher average balance accounts where recoveries are off anywhere from 30-60%.

I am afraid that we have not turned the corner on economic recovery yet and until consumer confidence and unemployment rates improve consistently for an extended period of time, the recession will continue to negatively impact recovery rates.

How are current trends affecting your recovery efforts? Agency and recovery managers, please share your experiences by commenting to this blog. What types of accounts are you servicing? How are your placement volumes and recovery rates? What creative techniques are you utilizing to improve your performance levels?