<story><title>More Subprime Borrowers Are Missing Loan Payments</title><url>https://www.wsj.com/articles/more-subprime-borrowers-are-missing-loan-payments-11652952602</url></story><parent_chain><item><author>nimbius</author><text>worth mentioning: the auto lending market in the US is a 1.6 trillion dollar time bomb and has been ever since Cash for Clunkers saw two rounds of federal funding.&lt;p&gt;the average period for an auto loan in the US is over 64 months.  any disruption to the paycheck-to-paycheck living of 64% of americans could have a catastrophic effect on the ability to service this debt.</text></item><item><author>yardie</author><text>From the article: car loans, credit, and person loans (payday loans). Mortgages are highly regulated since 2008&amp;#x27;s financial crisis. Those subprime lenders exited the mortgage business and jumped into high interest used car loans. And I&amp;#x27;m right there with you on the anal probing I had to practically get to qualify for a mortgage.</text></item><item><author>ryanSrich</author><text>How are people with a subprime score even getting a loan? When I took out a mortgage in 2015 and then again in 2017 they scrutinized my entire life. I have no idea how we’ve regressed back to 2008 after years of very strict regulations.</text></item></parent_chain><comment><author>JumpCrisscross</author><text>&amp;gt; &lt;i&gt;auto lending market in the US is a 1.6 trillion dollar time bomb&lt;/i&gt;&lt;p&gt;It &lt;i&gt;was&lt;/i&gt; a time bomb. Cars are easier to seize than houses. Given the present shortages, re-selling them at close to the loan balance shouldn&amp;#x27;t be an issue.&lt;p&gt;It&amp;#x27;s still a tale of personal tragedy. I know people on the new-car-every-two-years bandwagon who will get screwed when they have an income interruption. But it&amp;#x27;s not a broader risk, at least not at this time.</text></comment>
<story><title>More Subprime Borrowers Are Missing Loan Payments</title><url>https://www.wsj.com/articles/more-subprime-borrowers-are-missing-loan-payments-11652952602</url></story><parent_chain><item><author>nimbius</author><text>worth mentioning: the auto lending market in the US is a 1.6 trillion dollar time bomb and has been ever since Cash for Clunkers saw two rounds of federal funding.&lt;p&gt;the average period for an auto loan in the US is over 64 months.  any disruption to the paycheck-to-paycheck living of 64% of americans could have a catastrophic effect on the ability to service this debt.</text></item><item><author>yardie</author><text>From the article: car loans, credit, and person loans (payday loans). Mortgages are highly regulated since 2008&amp;#x27;s financial crisis. Those subprime lenders exited the mortgage business and jumped into high interest used car loans. And I&amp;#x27;m right there with you on the anal probing I had to practically get to qualify for a mortgage.</text></item><item><author>ryanSrich</author><text>How are people with a subprime score even getting a loan? When I took out a mortgage in 2015 and then again in 2017 they scrutinized my entire life. I have no idea how we’ve regressed back to 2008 after years of very strict regulations.</text></item></parent_chain><comment><author>avs733</author><text>and the auto loan business is shady a.f.&lt;p&gt;We ended up invovled with the state A.G.&amp;#x27;s office investigating our dealer. They &amp;#x27;accidentally&amp;#x27; put a typo in my wife&amp;#x27;s SSN when pulling the credit report. That justified a higher interest rate - which they offered us without explaining why.&lt;p&gt;We weren&amp;#x27;t super worried because we were going to pay the car off in a couple months anyways, we just wanted the financing to shift some cap gains taxes to a different year. Then we got a letter in the mail from the lender explaining why our interest rate was so high.&lt;p&gt;We called the dealer - and almost no questions asked they offered to send us a check for the difference. Red flag raised we filed a complaint with the state A.G., and it turns out it was a common practice at that dealership.</text></comment>