See Ch. 18 notes, pages 1-2 for overview of consumer lending and laws, particularly the Credit CARD Act at link below.

See article on recent consumer borrowing: Consumer Borrowing Picks Up_WSJ11 14 13.doc. KNOW relative sizes of loan types and delinquency rates.  

Update Q4 2014: Total Consumer Credit = $3,316B, Student Loans = $1,322B, Car Loans = $957B,  Revolving/Credit Card = $889B, Other Non-revolving = $148B

KNOW differences in private and public student loan markets outlined in the following article:  Banks Take Interest in College Lending WSJ 022414.docx.

See Credit Card Profitability Example and Risk Measures at link below. KNOW relative sizes of revenues and expenses and how performance metrics relate to risk

See information on credit scores and their usage at links below.  The first 15 pages of the 21 pages have material related to EXAM questions.

See the recent information on auto loans at http://libertystreeteconomics.newyorkfed.org/2015/11/just-released-new-charts-new-data-on-auto-loans.html#.VlNd4tAo670. KNOW the differences between auto finance companies vs. banks and credit unions with respect to subprime auto lending and delinquency rates.

See short article on consumer bankruptcy law at link below.

See graph on page 56 related to bankruptcy filings and credit chard chargeoffs at link below.  FDCI QBP Graphbook 2015 Q2.pdf

The articles below provide a good discussion of the high administrative costs associated with repossessing an auto and suggestions on how to reduce that likelihood by the consumer and the high administrative costs associated with payday loans. 

OPTIONAL (NOT ON EXAM)

Watch video on Survey of Consumer Finances 2013 at http://www.federalreserve.gov/econresdata/scf/scfindex.htm

Grading Student Loans, FRBNY, March 5, 2012, describes the student loan market, which in February 2012 was bigger than the auto loan and credit card loan markets.  Click on link below.

http://libertystreeteconomics.newyorkfed.org/2012/03/grading-student-loans.html

Analysis of student loans is similar to other consumer loans.  The debt payments-to-income ratio is a standard tool for assessing whether a borrower will have difficulty meeting his or her repayment obligations. For example, most banks will refuse to issue a loan if the total of your monthly debt payments (i.e., mortgages, credit cards, auto loans, educational loans, etc.) exceeds 37% of your income. It is recommended that your educational loan payments represent no more than 10% to 15% of your income. This calculator uses the debt payment-to-income ratio and a projection of your starting salary to derive a manageable debt load for you.  One should recognize that any student loan debt lowers your capacity to borrow for other things such as a car or home and make judgments about these tradeoffs.

http://www.finaid.org/calculators/undergradadvisor.phtml