Ted Rossman, Bankrate senior industry analyst, joins ‘The Exchange’ to discuss the rising cost of mortgages, high mortgages cutting homebuyers’ purchasing power, and risks involved in homebuyers’ betting on refinancing. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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Subprime auto delinquencies are worse now than during the Great Recession: Bankrate’s Ted Rossman
The financial fallout from the COVID-19 pandemic has left many American consumers struggling to pay their bills, and one area of concern is the rise in subprime auto delinquencies. According to Bankrate’s credit card industry analyst Ted Rossman, the current delinquency rates for subprime auto loans are actually worse now than they were during the Great Recession.
In a recent interview, Rossman explained that the combination of high unemployment, economic uncertainty, and a sharp increase in the cost of living has put a significant strain on the finances of many Americans. This has led to an increase in the number of subprime borrowers who are falling behind on their auto loan payments.
Subprime auto loans are given to borrowers with low credit scores or a history of financial difficulties. These loans typically come with higher interest rates and less favorable terms, making them more difficult to repay, especially during times of economic hardship.
According to Rossman, the current delinquency rates for subprime auto loans are higher now than they were at the peak of the Great Recession. This is particularly concerning given the fact that the overall economy is not as severely affected as it was during the recession.
The implications of this rise in subprime auto delinquencies are significant. Not only does it impact the financial well-being of individual borrowers, but it also has broader implications for the health of the auto lending industry and the economy as a whole.
In response to this trend, Rossman emphasizes the importance of addressing the underlying economic issues that are driving the increase in delinquencies. This includes providing support to struggling borrowers, implementing measures to improve financial literacy, and taking steps to create more sustainable lending practices in the auto industry.
Additionally, Rossman encourages borrowers who are struggling with their auto loan payments to reach out to their lenders and explore options for relief, such as loan modifications or refinancing. He also advises consumers to prioritize their transportation needs and consider alternative modes of transportation if they are unable to afford their current auto loan payments.
In conclusion, the rise in subprime auto delinquencies is a cause for concern and requires immediate attention from both policymakers and lenders. By addressing the root causes of this trend and providing support to struggling borrowers, it is possible to mitigate the impact of this issue and prevent further financial distress for American consumers.
Duh! Rent small place or room. Buying used Toyota, 4 cylinder Corolla or Camry for cash. Tightwad budget.
Stop price gouging by corporate america would prevent this
I got an assumable FHA loan at 2.5% in 2020.
Is it subprime…or is it all auto loans?
No chance, trash economy now
There have been several transactions with both strategic investors and private equity over the past 15 years since the Great Financial Crisis — oftentimes the PE component was not 100% and the capital raises were far less than $400 Million, money moves quickly from the hasty to the patient. The biggest hurdle for investors is maintaining mental control through losses, and investing in the right places at the right time
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
Bidenomics!
the world is insane right now, the children born today are so screwed.
How would you assume someone's mortgage? I'm selling my house, it's paid down 50%, how does my mortgage transfer to someone else if it's a fraction of the selling price?
Imagine thinking you can refinance down the road. You buy a $400,000 house that in 5 years drops in value to $350,000. You have a 7% mortgage and rates drop to 5%. LOL. DOH! You can't refinance!
This people they will never tell you don’t buy house or car if you can’t afford it simple ! Buy used car. Most of people are selfish I have no sympathy for those people who think they are smarter.
CRASH Only Will Fix This Problem!
That ad was gross
not many people had cars during the great recession great analogy wtf lol
Thank you Biden.. now more homeless..glad the Rich loberals are happy Ukraine is getting guns
7% is probably for excellent credit scores 680 and above.
I am curious to know what the rate is for scores less than 620.
"The buck stops here"
~quid pro Joe biden
I can vouch for the car payments being a lil crazy. My 22 CR-V hybrid is 740 month, 130 for insurance and I use 2 tanks per month which is like 120 month. Do the math. The average person can't swing that. Very sad.
Most people cause their oun financial problems by buying things they can't afford
That's what happens when you vote for Biden!
Any delinquencies any foreclosures it's all self-inflicted. Most people buy houses cars and everything else that they can't afford. People love living the lifestyle of the Rich and Famous and you are not the Rich and Famous. People buying new cars and. 3,000 square-foot houses, you're all broke
Yes, back on those days 90% of population was self sufficient,. Nowdays, people are idioots…
Ahahahahhahahha adjustable rate? To get into a home thats over priced…. what a tool
Home loan delinquencies have doubled YoY 2022-2023. Mortgage delinquencies are projected to double againheading into 2024.
Vote woke go broke.
Repo's are in the millions. Banks, CU's & auto auctions are neck deep in repo's. Vehicle loans pretty much has dried up. Credit ratings taking a big hit on the tons if Repo's. '24 is going to be a very bad year into '25.
Why is no part of the reporting, maybe the prices need to go down? Super low interest rates, and free money made prices go up. Remove them, prices should go down.
no just let prices fall not try to afford it