Archive for the ‘gas prices’ Category

Hurricane Aftermath: Over 25% Could Miss Mortgage Payment

Posted on September 13, 2017 by Laura Lam

Over one-quarter of all mortgages in the areas affected by Hurricane Harvey are likely to become delinquent within 4 months because of the storm, according to an analysis from Black Knight.  Approximately 300,000 mortgage borrowers will miss at least one payment on their loan because of the storm, with 160,000 not making 3 or more payments.  Black Knight modeled this estimate based on changes in the delinquency rate in Louisiana and Mississippi following Hurricane Katrina in 2005. Mortgage delinquencies in affected areas in Louisiana and Mississippi peaked at 34%, with the rate of seriously delinquent loans peaking at 16%. But there…

Subprime Borrowers Have Stopped Paying Auto Loans

Posted on December 21, 2016 by Laura Lam

More Americans are behind on their auto loans, which is keeping some banking experts up a night.  Roughly 6 million individuals are at least 90 days late on their car payments. The number of auto loans sinking into delinquency hit their highest level since 2010 in the third quarter, according to data from Federal Reserve Bank of New York researchers. The broader auto loan market remains robust. The total delinquency rates rose by just 3.6% in the third quarter, kept low by loans issued by banks and credit unions. Subprime auto loan delinquencies, in contrast, have worsened significantly in the past few years, rising to levels not…

Modest Economic Growth Expected in 2017

Posted on November 22, 2016 by Laura Lam

The U.S. economy is expected to continue growing modestly in 2017, but the unknown about policies to be enacted by President-elect Donald Trump’s administration pose both upside and downside risks, according to Fannie Mae.  Economic growth is still forecast to come in at 1.8% for this year, and a similar pace is anticipated for the following year, said Fannie Mae.  But uncertainty remains about Trump’s approach to economic and housing issues once he assumes office in January. “We haven’t changed the general tone of our forecast at this time, but we will incorporate new policy assumptions as they become more…

Has Auto Lending Lost Its Luster?

Posted on November 10, 2016 by Laura Lam

Regulators have been warning about frothy conditions in the market for automobile loans. But things had to hit close to home – shrinking loan yields and rising delinquencies – before bankers really paid attention.  Now, several companies said that they plan to scale back indirect auto lending, citing increased competition and narrowing spreads. Others are reducing exposure by selling off large chunks of auto loans – though those banks insist they remain committed to auto lending. Their moves come at a time when auto lending has reached record highs. The volume of auto loans made by banks, credit unions and…

Election Day 2016: Facts & Figures

Posted on November 08, 2016 by Laura Lam

Many Americans will be heading to the polls at some point today to cast ballots on the first Tuesday after the first Monday of November. So who picked that day, and why do we still observe it? Do some people vote on other days in the fall? Here are some answers to those and other questions about Election Day. Elections took place way before the Constitution was ratified – The English in particular conducted voting soon after they landed in Virginia in the 17thCentury. But not everyone could vote and not every office was up for election. But many colonies allowed…

A Treat for Economy: Higher Halloween Sales

Posted on October 31, 2016 by Laura Lam

Halloween spending is expected to top $8.4 billion this year, according to the National Retail Federation (NRF), the most since tracking began 11 years ago.  Its survey found more than 171 million Americans plan to celebrate Halloween, spending an average of $82.93, up from last year’s $74.34. Handing out candy is the most popular Halloween activity, with 70% planning to greet trick-or-treaters at the door. Consumers planning to dole out sweet treats are predicted to spend 5.5% more on Halloween candy compared to last year, bringing the anticipated total spend to $3.8 billion – or $30.60 per household. If realized,…

Americans Fall Behind on Car Loan Payments

Posted on October 19, 2016 by Laura Lam

Subprime borrowers are falling behind on their car loan payments at the highest rate in more than six years, and some bonds backed by these loans are vulnerable to getting downgraded, according to S&P Global Ratings. Competition has spurred lenders to loosen standards and resulted in more delinquencies and default by people with weak credit, the ratings firm said. Subprime borrowers were behind by more than 60 days on about 4.85% of auto loans in August, the highest level since January 2010. The rate was 4.14% in August of last year.  For prime loans, delinquencies in August rose to 0.5% from…

Trucking Is Growth Business for Leasing

Posted on October 05, 2016 by Laura Lam

New business volume grew 12.4% in the equipment finance industry in 2015, according to the 2016 Survey of Equipment Finance Activity (SEFA) released by the Equipment Leasing and Finance Association (ELFA). The rise in new business volume marked the sixth consecutive year that businesses increased their spending on capital equipment, according to the report. As an end-user of equipment finance, the trucking industry represented 7.3% of new business volume reported by ELFA member companies, up from 6.4% in 2014. Trucks/trailers represented 13.4% of equipment financing new business volume reported by ELFA member companies, up from 12.8% in 2014. “The equipment…

Banks Tighten Auto Loan Standards

Posted on August 04, 2016 by Laura Lam

Bankers continued tightening credit for business loans and auto loans in the last three months while they continued to ease credit standards slightly in their home mortgage and consumer loan portfolios, according to the Federal Reserve’s latest senior loan officer survey. A net 8.5% of bankers said they had tightened standards for large and mid-sized firms in the previous quarter, down from the previous report, while 7.1% said they tightened for smaller businesses, up slightly from the previous quarter. Significantly higher net percentages said they had tightened standards on a range of commercial real estate loans, with 44.3% saying they tightened…

Big Banks Warn of Slipping Credit

Posted on June 06, 2016 by Laura Lam

The heads of several big banks warned of looming deterioration in their loan books at a recent industry conference.  In the years following the crisis, asset quality has been on an upswing. Chargeoff rates have declined steadily as banks have worked through bad mortgages and consumers have gotten back on solid ground.  But don’t expect the good times to last, executives said. On both the consumer and commercial sides of the business, a range of economic factors – from rising interest rates to rapid growth in niche lending categories – will likely lead to an increase in problem loans over…