12/7/2023 0 Comments 2016 mortgage defaults(Related: New rules make it easier to get out of federal student loans.)Ī spokeswoman for one of the companies that handles billing federal student loans pointed out that the federal loan data also contained some encouraging signs. She said that about half of borrowers who sign up for such plans fail to provide sufficient documentation in time to qualify for the lower payment after their first year. In addition, Thompson noted that many borrowers have reported difficulty applying for and maintaining an income-based repayment plan. “New college graduates and new entrants to the workforce are facing a double whammy of flat or declining wages and higher debt.” “In spite of a booming stock market and falling unemployment, there is obviously a significant block of the labor force that is really struggling,” said Rohit Chopra, the former student loan ombudsman at the Consumer Financial Protection Bureau and currently a senior fellow at the Consumer Federation of America. (Here's everything you need to know about repaying your student loans.) The new record surprised and disappointed Thompson and other experts who had hoped improvements to the economy and to student loan payment options would have had a bigger impact.Īfter all, the economy and job market appeared to be strong in 2016: The national unemployment rate dropped from 5.3% in 2015 to 4.9% last year.Īnd the federal government now offers many flexible repayment plans, including income-driven options that allow borrowers to cap their payments on their federal student loans at a maximum of 10% of their disposable income. Overall, the total amount of defaulted federal student debt grew by about 14% in 2016. In fact, 1.1 million student borrowers defaulted for the first time in 2016, according to data released by the U.S. That means at least one out of every six people who have any federal student debt haven’t made a payment on their loans for at least nine months, says Jessica Thompson, research director for The Institute for College Access and Success. But they continued to show improvement from the previous quarter, MBA said.The number of defaulted federal student loans hit a new high in 2016: about 8 million borrowers have given up paying on more than $137 billion in education debts. states with the highest percentage of loans in foreclosure at 5.42 percent and 4.28 percent, respectively. New Jersey and New York remained the two U.S. This is the lowest rate of new foreclosures started since the fourth quarter of 1988. The share of loans on homes that began foreclosure in the fourth quarter of 2016 was 0.28 percent, down 2 basis points from the previous quarter, and 8 basis points lower than a year ago. The delinquency rate in the fourth quarter was 12 basis points lower than a year ago. The fourth-quarter delinquency rate showed no increase on a year-over-year basis.ĭelinquencies on home loans backed by the Department of Veterans Affairs rose to 4.00 percent from the prior quarter’s 3.89 percent which was the lowest since 1979. Seasonally-adjusted delinquency rates on mortgages insured by the Federal Housing Administration rose to 9.02 percent in the fourth quarter, up from the third-quarter’s 8.30 percent which was the lowest since 1997.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |