Consumers beginning to better manage debt during pandemic economy

___

What goes up must come down. Or so the lyrics to a popular old Chicago tune go. As for those in distress over the current COVID economy, for the first time since March, the total percentage of accounts in “financial hardship” for auto, credit card, mortgage, and personal loans fell across the board in July.

In a credit snapshot provided by Transunion, the percentage of accounts with mortgage loans in financial hardship declined from 6.79% in June to 6.15% in the month of July. HousingWire’s Alex Roha says, “The report defines accounts with deferred payments and forbearance programs as those in financial hardship and credits government stimulus and accommodation programs provided by lenders with helping the market withstand challenges in the near-term.”

He goes on to say that according to the report, the percentage of borrowers in 30-day delinquency and 60-day delinquency leveled off from the previous month at 1.81% and 1.08%, respectively. “Overall, the consumer credit market has been performing quite well despite the obvious challenges brought on by the COVID-19 pandemic,” said Matt Komos, vice president of research and consulting at TransUnion. “It’s a reassuring sign that delinquency levels have remained relatively low – especially as the percentage of consumers in financial hardship status has started to decline.”

Roha also reports that as government assistance continues to spur debate across the country and moratoriums near or pass expiration dates, concerns about the ability to pay bills and loans is at its highest level to-date among impacted consumers at 77%. He adds that 21% of consumers are worried about the ability to pay their mortgage, while 35% are concerned about making their rent payment. Among the respondents who said their household had been affected by the loss of their job (19%), 54% of those are renters.

“How consumers are able to manage debt levels and access to credit will be a key indication of economic recovery in the coming months,” Komos said.

Source: TBWS


All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Equal Housing Opportunity     

Mortgage Solutions Group, PLLC NMLS #181064  |  Powered By Xpert Home Lending, Inc. NMLS #2179191

States Licensed In:
AL 23249, AR 129623, AZ 1037959, CA DRE 02166758, CA DFPI DBO-1605250, CO 2179191, CN MCL-2179191, DC MLB2179191, DE 039059, FL MLD2250, GA 2179191, ID MBL.2082179191, IL MB.6761726, KS MC.0025868, MD 2179191, MI FL0024365, MI SR0024420, MN MN-MO-2179191, NE 2179191, NC L-211751, NJ 2179191, NM 2179191, OH RM.804928.000, OK ML015396, OR 2179191, PA 103794, SC DCA 2179191, TN 2179191, TX SML 2179191, VA MC-7517, WA CL-2179191, WI 2179191BA, WI 2179191BR, WY  4889

NOTICE TO TEXAS CONSMERS: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.

Gene Fuessel

Sr Loan Officer/Broker

NMLS: 181064

Mortgage Solutions Group, PLLC

Company NMLS: 2179191

Cell: 512-733-6207

Email: gene@mortgagesolutionsgroup.net

Web: https://www.mortgagesolutionsgroup.net/