The Consumer Financial Protection Bureau (CFPB) recently launched a new consumer credit trends tool that is designed to track consumer lending and predict future risks associated with that lending.
The beta version of the tool tracks loan originations for mortgages, credit cards, auto loans, and student loans. The tool also tracks how certain groups of consumers are fairing in the financial markets. The CFPB believes that tracking this information may help provide advance warnings in the financial market before they become significant issues.
The trends tool pulls data from a nationally representative sample of credit records maintained by one of the top three U.S. credit repositories. According to the CFPB, the personal data on those reports is scrubbed prior to becoming part of the trends tool.
The initial trends demonstrate the following:
- Mortgage lending between August and October was up nearly 50 percent over the same period a year ago;
- Credit card lending year-to-date was up nearly 14 percent;
- High risk auto lending was slightly down through October 2016; and
- Student lending volume was slightly down in 2016 compared to 2015.