Posts Tagged ‘delinquent’

Foreclosure Activity Hits Post-Recession Low in April

Posted on June 08, 2017 by Laura Lam

ATTOM Data Solutions released its April 2017 U.S. Foreclosure Market data, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 77,049 U.S. properties in April, down 7% from the previous month and down 23% from a year ago to the lowest level since November 2005. “Foreclosure activity continued to search for a new post-recession floor in April thanks in large part to the above-par performance of mortgages originated in the past 7 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile we are seeing an elevated share of repeat foreclosures…

Household Debt Hits New Record

Posted on May 23, 2017 by Laura Lam

Household debt is topping its 2008 peak prior to the housing crash. Total household debt has risen to $12.73 trillion in the first quarter, the Federal Reserve Bank of New York reported last week. However, Americans are handling their debt—mortgages, credit cards, auto loans, and other forms of borrowing – much better, the report shows.  Americans were delinquent on 4.8% of total debt in the first quarter. For comparison, at the end of 2009, 11.9% of consumers were delinquent on their debt by at least 30 days. The increase in household debt may indicate that more Americans are confident about…

Student Loan Defaults on the Rise

Posted on March 29, 2017 by Laura Lam

A new analysis of government data by the Consumer Federation of America found that the number of Americans in default on their student loans jumped by nearly 17% last year.  As of the end of 2016, there were 4.2 million Federal Direct Loan borrowers in default, meaning they’ve not made a payment in more than 270 days. That’s up from 3.6 million at the end of 2015. “Despite all improvements in the economy, student loan borrowers are still struggling,” said Rohit Chopra, senior fellow at the Consumer Federation of America (CFA).  As of the end of 2016, 42.4 million Americans…

Are Automakers Creating the Next Financial Crisis?

Posted on March 06, 2017 by Laura Lam

The country’s auto debt hit a record in the fourth quarter of 2016, according to the Federal Reserve Bank of New York, when a rush of year-end car shopping pushed vehicle loans to a dubious peak of $1.16 trillion. The combination of new car smell and new credit woes stretches from Subarus in Maine to Teslas in San Francisco.  It’s an alarming number, big enough to incite talk of a bubble. On average, every licensed driver in the U.S, owes about $6,100 in car payments. But the market for cars is a lot different than that for houses. Vehicles are a more fluid asset…

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…

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…

Delinquent FHA Loans Strain Mortgage Industry

Posted on August 10, 2016 by Laura Lam

An estimated 25% of all outstanding mortgages that were seriously delinquent at the end of the first quarter of this year were insured by the FHA, up from less than 20% in the first quarter of 2012, according to the Mortgage Bankers Association. FHA loans typically tend to default more than government-sponsored enterprise loans because they are designed to be more affordable to borrowers by offering lower down payment and credit score requirements. But market conditions that changed during the most recent housing boom-and-bust cycle have made the trend more pronounced. At one point during this cycle, FHA’s share of…

Commercial Mortgage Delinquencies Jump in June

Posted on August 02, 2016 by Laura Lam

Late payments on securitized commercial mortgages moved noticeably higher in June, as several large loans failed to pay off at maturity.  It was the fourth straight month that the rate has crept higher following two large decreases in January and February.  The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.6%, an increase of 25 basis points from May, according to Trepp. The rate is still 85 basis points lower than it was a year earlier and 57 basis points lower than it was at the beginning of this year.  The delinquency rate reached its multiyear…

Businesses Fall Behind on Their Loans

Posted on May 25, 2016 by Laura Lam

The Board of Governors of the Federal Reserve released its delinquency and charge-off data for all commercial banks in the first quarter – and it’s very sobering data.   While delinquencies on the consumer side appear quite positive, delinquencies on the business side are spiking. Consumer loans and credit card loans have been hanging in there so far. Credit card delinquencies rose in the second half of 2015, but in Q1 2016, they ticked down a little. Mortgage delinquencies are low and falling. When home prices are soaring, no one defaults for long; you can sell the home and pay off your mortgage….

Delinquencies Decline as Economy Improves

Posted on April 20, 2016 by Laura Lam

The number of seriously delinquent mortgages reached its lowest level in over 8 years, helped by new job creation and higher wages, CoreLogic reported.  The national foreclosure inventory maintained its steady decline through February, falling 23.9% to about 434,000 homes, or about 1.1% of all homes, compared to the same period last year, according to CoreLogic’s National Foreclosure Report. It’s the lowest inventory total since November 2007. The number of completed foreclosures fell 10% to 34,000 over the same period.  The number of home loans at least 90 days past due fell by 19.9% to 1.3 million mortgages, or 3.2% of…