Credit Stress in New York, New Jersey, and Connecticut Remains Below U.S. Average in Q4 2015: N.Y. Fed Reports

Consumer credit distress in New York, New Jersey, and Connecticut was reported to be below the U.S. national average in the fourth quarter, and it has decreased from the levels observed in mid-2015, according to the New York Federal Reserve.

In the latest report, the share of borrowers with loans that are at least 90 days overdue or those who have had accounts sent to collection agencies within the past year stood at 14.3 percent in New York, 15.5 percent in New Jersey, and 14.7 percent in Connecticut. Comparatively, the nationwide rate was 19.6 percent, as highlighted in the New York Fed’s semiannual Regional Household Debt and Credit Snapshots.

The report noted that seriously delinquent mortgages and student loans contributed significantly to consumer stress both nationally and in the three states monitored by the New York Fed.

For student loans, the serious delinquency rates were 16.2 percent across the nation, compared to 12.5 percent in New York, 13.5 percent in New Jersey, and 12.9 percent in Connecticut during the last quarter of 2015.

In terms of mortgage borrowers, the national delinquency rate was 2.3 percent, while New York reported 3.8 percent, New Jersey 4.6 percent, and Connecticut 3.0 percent. According to the New York Fed, the higher mortgage delinquency rates in New York and New Jersey are primarily due to the long foreclosure processes in these states.