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TransUnion Releases Q4 2016 Insight Report
TransUnion, a credit information service based in Chicago,
recently released its Q 4 2016 Industry Insight Report on credit
service trends for 2016. It found that in 2016 alone, 12 million
consumers gained access to credit services such as personal loans,
mortgages, auto loans, and credit cards.
Across the board, consumers are gaining access to credit
products like mortgages at a faster rate. Nidhi Verma, Senior
Director of Research and Consulting in TransUnion's financial
services business unit, said, "e consumer credit market
performed well at the end of 2016. Total balances rose across every
credit product in the fourth quarter following a strong shopping
season.
"For the past several years, auto lenders have been responding
to the pent-up demand in the subprime risk tier, and card issuers
have been competing for share of wallet. Lenders are issuing more
credit, and consumers are using that credit. As a result of this
conscious effort to relax underwriting, we have observed higher,
although still well-controlled credit card and auto delinquency
rates over time."
e mortgage delinquency rate is showing signs of plateauing,
concluding 2016 at 2.28 percent. Mortgage delinquency has
declined every quarter since Q 3 2013 (4.31 percent). e
delinquency rate dropped 7.3 percent last year but remained
unchanged from Q2 2016 to Q 3 2016 (2.30 percent to 2.29 percent).
In addition, mortgage originations and average mortgage
balance saw growth in 2016. Originations reached 2.23 million
in Q 3 2016. In Q 4 2016, the average mortgage balance reached a
postrecession high of $194,415. Joe Mellman, VP and Mortgage
Business Leader for TransUnion, said, "Originations have
continued to grow across all risk tiers, which suggests lenders may
be warming up to originating mortgages to nonprime borrowers,
even though that share of the market remains small at under 4
percent."
TransUnion has experienced its own success in 2016. Total
revenue for TransUnion in the fourth quarter was $436 million,
a 13-percent increase. "TransUnion delivered a strong fourth
quarter that caps an outstanding full year in 2016," said Jim Peck,
TransUnion's President and CEO.
