The Smart Team of NOVA® Home Loans

Training and Events (LO Comp, HMDA, Sales); Car and Student Loans Impacting Lending

Posted To: Pipeline Press

U.S. auto loan debt hit a record $1.16 trillion in the fourth quarter of 2016. That averages out to $6,100 in car payments per licensed driver. In fact, the NY Federal Reserve reported that household debt in the U.S. is set to surpass the 2008 peak, led by a sharp increase in student loans. Total consumer debt hit US$12.6 trillion in the 4th quarter of 2016, versus the US$12.7 trillion peak in Q3 2008. Student loan debt, which accounted for 5% of total debt then, now accounts for 10.4% – and it has jumped 170% since 2006 – about 30% of borrowers who graduated between 2009 and 2011 have defaulted on their loans. Mortgage and credit card debt account for smaller percentages of total debt than previously. Credit and Student Debt Trends Industry vet John Robbins reminded me of a Senator Alan Simpson…(read more)

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Source: Mortgage News Daily

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