NY Fed: Student And Auto Loans UP, DC And Maryland Lead In Student Debt

Confounded Interest ^ | 05/14/2013 | Anthony B. Sanders

[whitedog57]

The Federal Reserve Bank of New York announced that households continued to improve their finances during the first three months of 2013 (for the most part). Outstanding household debt declined approximately $110 billion from the previous quarter, due in large part to a reduction in housing-related debt and credit card balances. Meanwhile, delinquency rates for each form of household debt declined, with about 8.1% of outstanding debt in some stage of delinquency, compared with 8.6% the previous quarter.

Here is the report:

DistrictReport_Q12013

Mortgages, the largest component of household debt, fell in the first quarter of 2013. Mortgage balances shown on consumer credit reports stand at $7.93 trillion, down $101 billion from the level in the fourth quarter of 2012. Balances on home equity lines of credit (HELOC) dropped by $11 billion (2.0%) and now stand at $552 billion. Household non-housing debt balances were roughly flat, with increases in auto and student loans, by $11 billion and $20 billion respectively, offset by decreases in credit card balances ($19 billion) and other consumer loan balances ($10 billion).

About 309,000 consumers had a bankruptcy notation added to their credit reports in 2013Q1, a 16.8% drop from the same quarter last year, and the ninth consecutive drop in bankruptcies on a year-over-year basis.

On the housing front, the combined Real Estate Owned (REO) by Fannie, Freddie and the FHA declined to 189,5291 at the end of Q1 2013, down from 192,720 in Q4 2012, and down 9% from 209,077 in Q1 2012. The peak for the combined REO of the mortgage giants was 295,307 in Q4 2010.

Nevada and Florida are improving in mortgages 90+ days late, but still lead the nation.

Now for student loans. Washington DC and Maryland lead the nation in student debt per borrower. DC leads the league with the average loan balance over $40,000.

Colorado and New Hampshire join DC in the share of consumers with student debt.

And like serious mortgage delinquencies, Florida is once again a leader. The lowest delinquency rate is South Dakota, at just over 6.5 percent, while the highest is in West Virginia, at nearly 18 percent.

The ode to Washington DC students.

[whitedog57]

Talk about the corrupt crony state.

[Vigilanteman]

Three step process to get Fedzilla out of the student loan business permanently:

1. Write off 30% of it-- 25% in loan forgiveness to the borrower, 5% of it as a fee to the institution of higher education where it originated.
   
2. In return for the 5% fee, the educational institution is charged with collecting the 75% remaining. They have the tools-- they can revoke degrees of non-payers and put a hold on transcript and credential certification.
   
3. If they still can't collect with those tools, then Fedzilla can put a lien on their endowments, real estate and other assets.

[Buckeye McFrog]

Building a Loan Forgiveness Constituency for future Democrat elections.