Asset building - Data/Research
Consumer & Community Context is a new article series from researchers at the Federal Reserve Board. The series features original analysis of financial conditions and experiences of consumers and communities, including traditionally underserved and economically vulnerable households and neighborhoods. The first issue focuses on two questions regarding student loan debt: can it explain low homeownership rates for young adults, and does it affect millennial migration patterns or "rural brain drain"?
Since the Great Recession, homeownership rates have dropped and the wealth divide has widened for low-income and racial and ethnic minority households. Homeownership is a significant contributor to household balance sheets and generator of household wealth, particularly for these populations. A contract for deed is a seller-financed real estate contract consisting of installment payments. For households that desire the financial and physical security of owning a home, contracts for deed may provide an inexpensive option. However, risks may exist. This discussion paper explores informal homeownership issues by tracking contract for deed sales in the Southeast.
In this fourth issue of the Quarterly Debt Monitor, covering the fourth quarter of 2016, the St. Louis Fed explores decreasing auto debt growth alongside a rise in subprime delinquencies on car loans. Over the past few years, strong lending of auto and student debt has buoyed total debt, accounting for the majority of credit expansion. This report offers a closer look at auto lending, including the factors that contributed to the expansion in this sector.
The third issue of Community Scope 2016 will offer a broad overview of the challenges faced by today’s watermen that may be precipitating their declining numbers and will discuss alternative and supplemental employment options that may be available to them.
Community Development Financial Institutions in the Southeast: Surveying the Social Investment Landscape
Volume 4, Issue 1 2016 of Community Scope uses the results of the 2015 survey to present timely key findings on CDFI activity in the Southeast, including capitalization, demand, capacity, non-lending programs and services, and impact investing.
Student Debt, Wealth Inequality, and the Return on a College Degree: The Role of Children’s Savings Accounts
Research shows that in time, an investment in higher education eventually pays off. However, the payoff of investing in higher education varies greatly depending on whether one graduates with or without student debt. This Chicago Fed blog, from November 2016, summarizes the disparity of investment returns in education between those with and without student debt, and ways to make such returns more equitable.
This Dallas Fed article provides an overview of the latest in Texas' payday lending field, highlighting impact on low-income communities, recent changes to local ordinances, the CFPB's proposed federal regulations and low-cost alternatives in the state and across the U.S.
Interested in learning consumer credit trends in your region? The Consumer Credit Explorer (CCE) is a new interactive tool for examining trends in consumer credit use at the regional, state, and national levels. The CCE enables users to look at quarterly changes in credit use indicators from 2005 to 2015 and to compare indicators across different areas. Check out the CCE and examine key credit use indicators related to mortgage debt, auto debt, student loan debt, debt collections, and others. Users can view these indicators by borrowers’ neighborhood income, credit score, and age.
The rapid growth of asset poverty in the United States is a troublesome sign that millions of families nationwide lack the resources necessary to secure a more stable financial future. The findings in this report, published by the San Francisco Fed, from the National Asset Scorecard for Communities of Color (NASCC) survey reveal major disparities in wealth accumulation across various racial and ethnic groups in Los Angeles.
Boosting the Power of Youth Paychecks: Integrating Financial Capability into Youth Employment Programs
This working paper from the San Francisco Fed summarizes the results of the first-ever quasi-experimental design study of a youth financial capability initiative seamlessly integrated into a youth workforce development program.