What the Federal Reserve of New York says about delinquencies.
Earlier in February, the Federal Reserve Bank of New York came out with a report that included rising delinquency statistics. According to the report as shown in Subprime News, the four reasons are:
1. More loan originations in subprime.
2. More subprime financing
3. "Softer/gentler collection strategies"
4. Waiting longer to repossess and charge-off accounts.
Also, in the same report, it's stated that 30% of the $1.27 Trillion in outstanding debt originated with borrowers who had a credit score over 760. Subprime debt fell to 22%.
What does this all mean to BHPH/LHPH collection and underwriting strategies going forward?