Subprime loans represent over 33% of vehicle loans sold today!
Auto Loans = 33% Subprime
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Tag Archives: BK data
Most Viewed Pages
We were reviewing our website statistics and found that 11.5% of our website hits come from our blog!
Most read blog (to date) is the Fairness for Struggling Students Act (posted on April 24). Coming in at a close second is the blog on our recent Graphic Excellence Award win, posted on March 15. Rounding out the top three most popular posts is our Ro Royall at the Houston Zoo Partners Summit.
Some other interesting stats include:
- Our top two most visited webpages are the Home Page and Resource Center!
- Of outside links directing people to our website:
* 21.7% come from our sister company’s wesbite bebtexas.com
* 11.7% come from Twitter
* 5% come from LinkedIn
* 2.1 % from the QR codes on our 2013 Calendar landing pages
January
February
March
April
May
Too Big To Fail & Too Big To Jail
Bankruptcy and risk management experts discussed details regarding deficiencies of the Dodd-Frank financial reform law at a House Financial Services Oversight and Investigations Subcommittee hearing on Wednesday.
The core provision of the 2010 reform law was to keep the government from paying the bailout bill of major financial institutions when they fail. However, federal government financial regulators still have discretion to subsidize large financial institutions if their failure threatens the economy.
Officials have publicly noted that the government’s ability to prosecute large institutions and their executives for financial crimes is hindered when institutions are treated as “too big to fail”.
Possible corrections discussed including shrinking the biggest institutions and reducing their risk to the financial system. California Democrat Brad Sherman used the phrase “too big to fail and too big to jail”. He said that no institution should be so large that its creditors believe they will be bailed out and its executives believe they are immune from the laws.
A second fix discussed included greatly limiting or all together doing away with regulators’ option of funding and restructuring a failing institution outside of bankruptcy.
Student Loans Default Rate
The Department of Education says the federal student loans have a three-year default rate of 13.4% unlike private loans that make up approximately 7% of the marker and continue to perform better.
Fariness For Struggling Students Act
Senator Dick Durbin
US Senators Dick Durbin (D-IL), Tom Harkin (D-IA) and Al Franken (D-MN) are reintroducing the Fairness for Struggling Students Act of 2013 in an attempt to address issues surrounded the growing student loan debit crisis. Sources report student loan debt among college students surpasses $1 trillion last year and approximately $150 billion of outstanding student loan debt is in private loans.
The Fairness for Struggling Students Act proposes treating privately issued student loans in bankruptcy the same as other types of private debt. Since 1978, only government issues or guaranteed student loans have been treated as non-dischargeable during bankruptcy in order to safeguard federal investments in higher education. In 2005, the law was changed to give private loans the same privileged bankruptcy treatment as government loans, even though they have vastly different terms and fewer consumer protections.
The differences between private and federal student loans is distinct. Federal loans have fixed interest rates and offer consumer protections, deferment and forbearance in times of economic hardship, as well as manageable repayment options.
Private student loans often resemble credit cards rather than financial aid with uncapped variable interest rates, large origination fees and few consumer protections. Private loans are ineligible for federal forgiveness, cancellation or repayment programs.
If the Act is passed, private student loans will once again be dischargeable in bankruptcy.
Bankruptcy and Under 25’s
The Canberra Times reported that the biggest cause of bankruptcy among under 25’s in Australia is mobile phone bills.
BK & Student Loans
An interesting article on BK and student loans from Steve Rhode’s blog. He says 4 Out of 10 people were able to discharge student loans in bankruptcy — but most never try. Read more here
Errors on Credit Reports Cost Consumers
A recent FTC Bureau of Economics study says that 5% of US Consumers have errors on their credit reports that can hike the cost of credit. Interesting article from NBC here.
BEBdata Calendar QR Code – February 2013
Be sure to scan the QR Code located on your BEBdata Interactive Calendar to see where it takes you! Or you can click here too.
Subprime Lending In Stimulation Mode
Credit card and vehicle financing subprime lending is in a stimulation mode. A recent study showed 25% of risk managers at banks and other financial institutions surveyed expect subprime lending to expand in the next six-months. About 50% of those predict a rise will surface in auto loans which indicates that the market may be loosening.