TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1494596
54 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA TransUnion Releases the Q4 2022 Quarterly Credit Industry Insights Report In Q4 2022, many consumers continued to look to credit as a means to help stave off financial pressures caused by inflation. A midst an economic environment of rising interest rates and high inflation, Q 4 of 2022 saw consumers continuing to look to credit as a means to help stave off these financial pressures. TransUnion's Q 4 2022 Quarterly Credit Industry In- sights Report (CIIR) shows that whether it is Gen Z consumers opening credit cards, homeown- ers taking out home equity lines of credit (HELOCs), or consum- ers continuing to turn to unse- cured personal loans, more and more borrowers are looking to a range of credit products to cope with the financial pressures of today and better position them- selves for the evolving financial landscape. An example of increased credit usage: credit card balances con- tinued to grow, reaching record levels at the end of 2022. Bankcard originations were also up year over year (YoY) in Q 3 2022 (the most recent originations data available), from 20.1 million in Q 3 2021 to 21.6 million. Gen Z con- sumers, in particular, increasingly continued to turn to bankcards, showing YoY growth in both balances (up 64% YoY in Q 4 2022) and originations (up 18.8% YoY in Q 3 2022). Somewhat concerning is an upward trend in credit card delinquencies in both bankcard and private label; however, con- text is required. Delinquencies for bankcards in Q 4 2022 are still hovering around pre-pandemic levels observed in 2019 while private label card delinquencies remain below pre-pandemic levels. While higher interest rates dampened new and refinance mortgage originations in Q 3 2022, homeowners continued eagerly tapping into their record stores of home equity to help in consolidating their high interest debt. The most recent origina- tion figures from Q 3 2022 show that HELOCs and home equity loans (HELOANs) continued to be popular options in Q 3 2022. Consumers are also still seeking out unsecured personal loans as a way to pay off high-interest debt and, despite growing delinquency rates among borrowers, lenders remain eager to lend, albeit seem- ingly with adjustments in their lending criteria that includes a gradual shift away from below- prime borrowers.