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Subprime lenders’ profits slip
Auto finance companies that lend to the riskiest customers remained profitable last year. But their average results dropped 20 percent from the prior year, according to the National Automotive Finance Association’s 2015 Non-Prime Automotive Financing survey.
Two-thirds of the institutions polled reported that their results declined.
Even so, the value of U.S. portfolios of subprime loans on new and used vehicles grew for the fourth consecutive year, the association said. Read more…
Credit Card Delinquency Remains Low
CHICAGO, IL, Aug 25, 2015 – More credit cards are being offered to subprime consumers, but delinquency rates remain low, according to the latest TransUnion, Industry Insights Report. The credit card delinquency rate (the ratio of borrowers 90 days or more delinquent on their general purpose credit cards) remained steady at 1.19% in Q2 2015. The delinquency rate was relatively unchanged read more
Americans who recently took out federal student loans aren’t paying down their debt.
Recent Federal Student Loans Look A Lot Like Subprime Mortgages
Written by:
Shahien Nasiripour
Chief Financial and Regulatory Correspondent, The Huffington Post
Federal student loans made in recent years resemble the toxic subprime mortgage loans that helped cause the Great Recession, new data show.
Rather than paying down their balances after leaving school, borrowers with recent federal student loans are experiencing an increase in debt as they fail to make enough payments to offset the accumulating interest on their loans. Read more…