The Southern region of the United States is experiencing a worrying trend in regards to credit access and interest rates. According to the Consumer Financial Protection Bureau (CFPB), consumers in the region are facing increasingly difficult access to credit and higher interest rates than consumers in other parts of the country.
This represents a surge in credit-constrained households in the area, with research showing that consumers in the South are already more likely to make payments late on their existing loans. On top of this, the CFPB found that homeowners in the southern region tend to commute for longer periods leaving fewer hours to work additional income, resulting in an additional burden on those pursuing credit.
The issues highlighted by the CFPB include:
• Credit Access: Difficult access to credit is more of an issue in the Southern region in comparison to other areas of the US.
• Interest Rates: Consumers in the Southern region face higher interest rates than people in other parts of the country.
• Credit-Constrained Households: Lower quality of credit in the Southern region has led to more credit-constrained households in the area.
• Commuting: Longer commutes for people in the Southern region leaves fewer hours to work additional income and reduces their ability to access credit.
You can read this full article at: https://www.housingwire.com/articles/southern-residents-often-pay-more-for-mortgages-credit-access-cfpb/(subscription required)
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