To: bart13 who wrote (125665 ) 12/5/2016 6:23:57 PM From: John Vosilla Respond to Over the past ten years, the real amount of student debt owed by American households more than doubled, from about $450 billion to more than $1.1 trillion, with average real debt per borrower increasing from about $19,000 to $27,000. As a result of this increase, student loan debt surpassed credit card debt as the largest class of non-housing consumer debt in 2010. A potential consequence of the higher reliance on student debt to finance higher education, coupled with the adverse effects of the Great Recession, is difficulty in meeting these debt obligations. As a possible reflection, the share of balances 90 or more days delinquent increased from 6.7% to 11.7%. publications.nasfaa.org "The worsening in the delinquency rate of subprime auto loans is pronounced, with a notable increase during the past few years," the report said. To be clear, the overall delinquency rate for auto loans is pretty stable, and the majority are performing well. There are, however, signs of stress in the subprime market segment, which has seen rapid growth. Here are the key numbers from the report: The subprime delinquency rate for the trailing four quarter period moved to 2% in the third quarter. The only other time it was 2% or more was in the aftermath of the financial crisis. Subprime auto loan originations hit $31.3 billion in the third quarter, down from $33.6 billion in the second quarter. Bank and credit unions originated $9.5 billion in subprime auto loans in the period, a record high. Outstanding subprime auto loan balances now stand at $280.2 billion, a record high. For perspective, the pre-crisis high was $249.5 billion, in the fourth quarter of 2007. In other words, the subprime delinquency rate is creeping up, while the subprime market is ballooning in size. The Liberty Street Economics post, written by Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw, said: "The data suggest some notable deterioration in the performance of subprime auto loans. This translates into a large number of households, with roughly six million individuals at least ninety days late on their auto loan payments." businessinsider.com
