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Discussion Paper
Just Released: Hints of Increased Hardship in America’s Oil-Producing Counties
Today, the New York Fed released the Quarterly Report on Household Debt and Credit for the first quarter of 2016. Overall debt saw one of its larger increases since deleveraging ended, while delinquency rates for the United States continued to improve and remain at very low levels. Although the overall picture of Americans? liabilities has continued to improve since the financial crisis, we wondered what the variation looks like at local levels. One advantage of our Consumer Credit Panel (CCP), which is based on Equifax credit data, is that we can examine geographic variation in debt and ...
Speech
Opening remarks at the Convening on Student Loan Data Conference
Remarks at the Convening on Student Loan Data Conference, Federal Reserve Bank of New York, New York City.
Working Paper
Returning to the Nest: Debt and Parental Co-residence Among Young Adults
This paper examines the relationship between a young adults' debt burden and the decision to co-reside with a parent. Using a quarterly panel of young adults' credit histories, and controlling for age, county, and quarter fixed effects, and local demographic characteristics, unemployment rates, and house prices, we estimate the relationship between current period debt and subsequent decisions to co-reside with a parent. Our results indicate that indebtedness--as measured by average loan balances, declining credit scores and delinquency on accounts--increases flows into parental co-residence. ...
Journal Article
Deja Vu? The Recent Rise in Credit Card Debt Delinquencies
An analysis examines how a recent rise in credit card debt delinquencies compares with a similar trend during the global financial crisis of 2007-09.
Working Paper
State Mandated Financial Education and the Credit Behavior of Young Adults
In the U.S., a number of states have mandated personal finance classes in public school curricula to address perceived deficiencies in financial decision-making competency. Despite the growth of financial and economic education provided in public schools, little is known about the effect of these programs on the credit behaviors of young adults. Using a panel of credit report data, we examine young adults in three states where personal financial education mandates were implemented in 2007: Georgia, Idaho, and Texas. We compare the credit scores and delinquency rates of young adults in each of ...
Discussion Paper
Debt Relief and the CARES Act: Which Borrowers Face the Most Financial Strain?
In yesterday's post, we studied the expected debt relief from the CARES Act on mortgagors and student debt borrowers. We now turn our attention to the 63 percent of American borrowers who do not have a mortgage or student loan. These borrowers will not directly benefit from the loan forbearance provisions of the CARES Act, although they may be able to receive some types of leniency that many lenders have voluntarily provided. We ask who these borrowers are, by age, geography, race and income, and how does their financial health compare with other borrowers.
Which Families Are Most Vulnerable to an Income Shock? A Look at Race and Ethnicity
While liquid assets, education and other factors are associated with how economically resilient families may be during a crisis, race and ethnicity are also related.
Report
Payment size, negative equity, and mortgage default
Surprisingly little is known about the importance of mortgage payment size for default, as efforts to measure the treatment effect of rate increases or loan modifications are confounded by borrower selection. We study a sample of hybrid adjustable-rate mortgages that have experienced substantial rate reductions over the past years and are largely immune to these selection concerns. We find that payment size has an economically large effect on repayment behavior; for instance, cutting the required payment in half reduces the delinquency hazard by about 55 percent. Importantly, the link between ...
Speech
Student debt and higher education financing: a public finance perspective
Remarks at the National Association of College and University Business Officers, at the Waldorf Astoria, New York City.
Identifying the Most Financially Vulnerable Families
Households with less than two months’ income in liquid assets and those with high debt-to-income ratios face the greatest risk of serious delinquency.