1. Loans & Mortgages 2018 Profiler
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2. Americans’ Debt Continues to Increase
According to the Federal Reserve Bank of New York, household debt totaled $13.15 trillion at the end of 2017, an increase of 4.5% from $ trillion at the end of This was the 5th consecutive year annual household debt increased.
Mortgage debt increased the most, with an additional $139 billion during Q4 2017, compared to Q3 2017, for a total of $8.88 trillion. Credit card debt had the second largest increase, or $26 billion, to a total of $834 billion.
All 4 primary loan types (mortgage, auto, credit card and student) increased during Q Credit card delinquencies are expected to increase to 2% of balances during 2018, but fewer personal loans were delinquent during Q

3.
Debt by the Numbers
Of the approximately $4.27 trillion in non-mortgage consumer debt at the end of 2017, depository institutions (banks) held the most, $1.564 trillion, or 36.7%; finance companies, 12.3%; credit unions, 10.0%; US government, 26.9%; and others, 14.1%.
New York Federal Reserve data shows that the number of new mortgages has been mostly flat since Q1 2013, while new auto loans have increased 3.75%, credit card accounts increased 3.46% and HE revolving accounts decreased 3.57% from Q to Q
The good news for consumers is that new foreclosures have decreased 12.37% from Q to Q4 2017, to 69,160. Foreclosures’ peak was 566,180 during Q New bankruptcies have decreased 1.84% to 200,400 YOY during Q

4. Mortgage Business Contracts at the End of 2017
Mortgage Business Contracts at the End of 2017
According to data from the US Consumer Financial Protection Bureau, 700,403 new mortgage loans were projected to be originated during November 2017, a 7.81% YOY decrease. Total mortgage value was $451.5 billion for Q4 2017, a 26.8% YOY decrease.
Although new mortgages during Q decreased among people of all levels of creditworthiness, they decreased the most among those with excellent and good credit, -28.9% and -27.5%, respectively. Among those with poor credit, they decreased -10.7%.
New York and New Jersey have the most mortgages that are 90+ days delinquent, or 3.63% and 2.97%, respectively, followed by Nevada, 1.76%, and Pennsylvania, 1.75%.

5. Good and Bad News for Home Buying
Good and Bad News for Home Buying
The Mortgage Bankers Association predicts that the mortgage rate for 2018 will increase to 4.6% and Realtor.com expects it to reach 5.0% by the end of For comparison, the average interest rate for mortgages at the end of 2017 was 4.15%.
More and more Millennials are buying homes. The US Consumer Financial Protection Bureau projected that the number of mortgages among those younger than 30 would increase by 26.3% YOY during November 2017.
The tax bill passed during December 2017 limits the deduction for property taxes, making home ownership more expensive, and may curb borrowing. Higher interest rates will immediately affect credit card balances and adjustable-rate mortgages.

6. The Creditworthy Can Sign and Drive
The Creditworthy Can Sign and Drive
According to the St. Louis Federal Reserve, the outstanding amount for all motor vehicle loans reached $1.114 trillion at the end of 2017, a 3.8% increase from Transunion expects auto lenders to require larger down payments during 2018.
As a result of a rash of delinquencies, with roughly 6 million Americans 90+ days late on paying their auto loans, banks tightened approval standards. Prime and super-prime loans account for 60% of the outstanding balances, with subprime and deep subprime, 22%.
The car market has stagnated, but outstanding loan balances are larger because consumers are opting for longer loans to keep payments low Approximately 107 million people, 43% of Americans, have auto loans, which is more than those with home loans.

7. The High Cost of an Education Continues
The High Cost of an Education Continues
According to the Federal Reserve Bank of New York’s Q report on household debt, student loan debt increased $68 billion from Q to Q4 2017, to a total of $1.378 trillion, and accounted for 10.5% of total household debt.
Although student loans once again had the highest seriously delinquent rate (at least 90 days past due) of all five debt categories, at 10.96%, it was less than the 11.17% seriously delinquent rate at the end of 2016.
The new tax bill eliminates deductions for student loan interest as of The administration’s fiscal budget recommends eliminating the Public Service Loan Forgiveness Program, which eliminates some student debt after 10 years.

8. Advertising Strategies
Advertising Strategies
Local financial institutions that offer student loans can demonstrate their concern for students and families’ potential debt load as well maximize the number of good loans by sponsoring student financial aid workshops at high schools.
Recommend local financial institutions use a combination of TV to build their brand and outdoor media to reach consumers in their cars, with electronic billboards that allow them to display the current auto loan rate.
Create and market special starter-home loans for Millennials looking to buy smaller, less-expensive homes.

9.
New Media Strategies
To reach Millennials and other young adults, banks and credit unions can market their loan products with ads on TV stations’ and local print media, such as weekly entertainment publications, Websites.
Encourage customers (with incentives, if necessary) to post short videos that explain why they needed a loan, why they chose a particular lending institution and their satisfaction with the service and loan details.
Local lending institutions that offer student loans may find an influencer marketing campaign useful. Either find an industry expert on the subject to interview and/or provide content or find a young adult who is paying a loan to provide his or her insights/tips.

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