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The fledging U.S. Consumer Financial Protection Bureau and Director Elizabeth Warren continues to be opposed by Republicans as it is independent of Congressional appropriation and reach and its legality is currently questionable based on similiar case rulings.
“A strong independent consumer agency is good for families and lenders that follow the rules and good for the economy as a whole,” Warren said yesterday in an interview. “I will keep fighting for that.” Read more for details.
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Positive out look that the economy is in repair by the numbers revealed in Equifax’s latest monthly National Consumer Credit Trends Report. Overall, the report shows that between July 2011 and July 2012 there were year over year dollar base declines.
“Consumers continue to improve their credit management, through higher monthly payments on card accounts, refinancing of existing mortgage debt at lower rates, and lower delinquency ratespretty much across the board,” said Equifax Chief Economist Amy Crews Cutts. “Growth in total credit is consistent with the overall improvement in the economy – slow, but steady – with the exception of mortgage debt which is declining overall.”
Sixty day plus delinquency rates down 35% for Auto Loans, 23% Consumer finance, 21% Bank credit cards. First mortgage severe derogatory moving to REO is declined 17% , first mortgage 30 day plus delinquency declined 15% with home equity revolving 30 day plus delinquency declined 7%
“The decline in mortgage debt is due to loans converting to real estate owned at the end of the foreclosure process, homeowners paying down debt faster through cash-in refinancing, or shortening of the mortgage term as well as borrowers curtailing the debt by adding a bit extra to their payment each month, Crews Cutts added.
In addition to improving delinquency rate is the rise of new credit which increased 13% to $348 billion in May 2012 from $305 billion a year earlier. New bank credit card increased 21% to $72.9 billion through May 2012 from a May 2011.
“Student loans is one area of lending not affected by tighter underwriting standards since the start of the recession,” said Crews Cutts. “The investment in higher education pays off over a person’s lifetime, while the tuition cost has to be paid up-front, leading to big demand for student loans.
But if the graduate does not find a job right away there will be much difficulty when the first installment payment is due once they graduate.