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Community Development Research

Consumer Credit Conditions, June 2013

The Consumer Credit Conditions update for the Eleventh Federal Reserve District presents maps and charts of consumer loan balances and delinquencies in the district by county, state, loan type and risk score. The data are based on the Federal Reserve Bank of New York Consumer Credit Panel (CCP). While the Eleventh District of the Federal Reserve Bank of Dallas includes Texas, northern Louisiana and southern New Mexico, parts of the update also provide data for all of Louisiana and New Mexico.

  • Overview
  • Maps
  • Charts
  • Tables
  • Glossary
  • About the Data
  • Past Reports

Overview

While Texas, Louisiana and New Mexico each saw small growth in the number of consumers, aggregate consumer debt went up $9.6 billion, or 1.4 percent, in the district from June 2012 to June 2013. This year, the update includes data on student loans, with 2012 data adjusted for comparison purposes. Large increases in auto (11.7 percent) and student (10.9 percent) loan balances contrasted with declines in mortgages, retail trade debts and home equity installment and revolving loans.

In all three states, the share of mortgages in per capita debt went down more than 1 percentage point, while the share of auto and student loans climbed about 1 percentage point each. For an average consumer with a credit report in Texas, mortgage loans fell from 62.4 percent in June 2012 to 60.6 percent in 2013, while auto loans rose from 12.6 percent to 13.9 percent and student loans from 9.6 percent to 10.4 percent.

Mortgage delinquencies declined from 6.3 percent in 2012 to 4.9 percent in 2013, while serious delinquencies dropped from 3.3 percent to 2.4 percent. Because of the large share of mortgages in consumer debt, this contributed to the overall improvement in consumer loan performance in the district from a year ago.

The exceptions to this trend are few. In New Mexico, serious delinquencies in consumer finance and home equity installment loans went up, and in Louisiana, delinquencies in retail trade debt slightly increased. For all states in the district, both total delinquency and serious delinquency rates for student loans increased about 2.5 percentage points from a year ago. However, the increases could be partially attributed to uneven credit reporting in serious student loan delinquencies, driven by the severely derogatory category in third quarter 2012. A recoding of delinquency status in the data also could partially explain the hike. Since fourth quarter 2012, student loan delinquency rates have declined for Texas and the part of Louisiana that is in the district.

PDFFull Report (PDF Version)

Charts of Consumer Credit Conditions in the Eleventh Federal Reserve District

 

Consumer Loan Balances in Eleventh District and U.S., June 2012 and 2013

2013
All Consumer Loans
2012
All Consumer Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
20,589
  Louisiana
20,343
 
New Mexico
13,728
  New Mexico
13,609
 
Texas
659,198
  Texas
649,948
 
11th District
693,515
  11th District
683,901
 
U.S.
11,010,265
  U.S.
11,272,428
 
2013
Auto Loans
2012
Auto Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
3,184
  Louisiana
2,904
 
New Mexico
2,087
  New Mexico
1,874
 
Texas
91,824
  Texas
82,116
 
11th District
97,096
  11th District
86,895
 
U.S.
807,606
  U.S.
743,067
 
2013
Bankcard Loans
2012
Bankcard Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
1,371
  Louisiana
1,414
 
New Mexico
1,004
  New Mexico
1,018
 
Texas
49,050
  Texas
48,947
 
11th District
51,425
  11th District
51,379
 
U.S.
663,676
  U.S.
670,615
 
2013
Consumer Finance Loans
2012
Consumer Finance Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
372
  Louisiana
358
 
New Mexico
200
  New Mexico
197
 
Texas
7,326
  Texas
7,109
 
11th District
7,898
  11th District
7,664
 
U.S.
66,924
  U.S.
70,749
 
2013
First Mortgage Loans
2012
First Mortgage Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
10,815
  Louisiana
10,947
 
New Mexico
7,726
  New Mexico
7,765
 
Texas
399,363
  Texas
405,029
 
11th District
417,903
  11th District
423,741
 
U.S.
7,553,092
  U.S.
7,882,120
 
2013
Home Equity Loans
2012
Home Equity Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
302
  Louisiana
337
 
New Mexico
276
  New Mexico
305
 
Texas
14,156
  Texas
15,602
 
11th District
14,735
  11th District
16,244
 
U.S.
168,758
  U.S.
178,123
 
2013
Home Equity Line of Credit Loans
2012
Home Equity Line of Credit Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
457
  Louisiana
506
 
New Mexico
180
  New Mexico
210
 
Texas
7,228
  Texas
7,686
 
11th District
7,866
  11th District
8,402
 
U.S.
538,824
  U.S.
588,053
 
2013
Retail Loans
2012
Retail Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
210
  Louisiana
210
 
New Mexico
129
  New Mexico
133
 
Texas
6,115
  Texas
6,439
 
11th District
6,454
  11th District
6,783
 
U.S.
65,641
  U.S.
69,753
 
2013
Student Loans
2012
Student Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
2,788
  Louisiana
2,509
 
New Mexico
1,540
  New Mexico
1,399
 
Texas
68,963
  Texas
62,176
 
11th District
73,292
  11th District
66,084
 
U.S.
990,499
  U.S.
909,192
 
2013
Other Loans
2012
Other Loans
 
Total balance (millions of dollars)
 
Total balance (millions of dollars)
Louisiana
1,088
  Louisiana
1,158
 
New Mexico
587
  New Mexico
707
 
Texas
15,169
  Texas
14,836
 
11th District
16,844
  11th District
16,700
 
U.S.
155,244
  U.S.
160,755
 

NOTE: Loan balances for Louisiana and New Mexico include only the portions of those states that fall within the Eleventh District of the Federal Reserve.
SOURCE: Federal Reserve Bank of New York Consumer Credit Panel/Equifax.

PDFPDF Version

 

Glossary

  • Delinquency status
    • Current—Paid as agreed
    • 30 days late—Between 30 and 59 days late; not more than 2 payments past due
    • 60 days late—Between 60 and 89 days late; not more than 3 payments past due
    • 90 days late—Between 90 and 119 days late; not more than 4 payments past due
    • 120 days late—At least 120 days past due; 5 or more payments past due or collections
    • Severely derogatory—Any of the previous states, combined with reports of repossession, charge off to bad debt or foreclosure

    Not all creditors provide updated information on payment status, especially after accounts have been derogatory for a longer period of time. Thus, the payment performance profiles obtained from our data may to some extent reflect the reporting practices of creditors.

  • Seriously delinquent loans
    Loans that are 90 days late, 120 days late or severely derogatory.

  • Equifax Risk Score
    Equifax Risk Score 3.0 was developed by credit scoring agency Equifax and predicts the likelihood of a consumer becoming seriously delinquent (90+ days past due). The score ranges from 300 to 850 (the lower the score, the greater the delinquency risk). In the charts, Equifax Risk Scores fall into the following categories: Prime, greater than 680; near prime, 620–679; subprime, less than 619.

  • Loan types
    The types of accounts in our analysis include mortgage loans, home equity installment loans (HEL), home equity line of credit accounts (HELOC), auto loans, bankcard accounts, student loans (currently not included in the Eleventh District update), consumer finance loans (sales financing, personal) and retail loans (clothing, grocery, department store, home furnishings, gas, etc.)

  • Data dictionaryoff-site

About the Data

The Federal Reserve Bank of New York Consumer Credit Panel (CCP) consists of detailed Equifax credit-report data in quarterly increments from 1999 to the present for a unique longitudinal panel of individuals and households. The panel is a nationally representative 5 percent random sample of all individuals with a Social Security number and a credit report; the CCP is also matched to individuals living at the same address as the primary sample members. The resulting database includes approximately 40 million individuals in each quarter. More technical background about the data is available at www.newyorkfed.org/creditconditions/technical_notes.pdfOff-site PDF.

For conditions nationally, visit the New York Fed's Household Credit webpageoff-site. The Bank's Quarterly Report on Household Debt and Credit provides data and reports on consumer debt for the U.S. and select states (including Texas). The data include bankruptcies, per capita debt levels, total debt levels and composition of debt, new originations of installment loans, total balance by delinquency status, foreclosures and new delinquencies by loan type. The report aims to help community groups, small businesses, state and local government agencies and the public to better understand, monitor and respond to trends in borrowing and indebtedness at the household level.

In the Consumer Credit Conditions update, charged-off and foreclosed loans are still accounted for in totals in the Equifax data until they are no longer reported by the lender.

Past Reports

PDF2012 Report

 

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