NEW YORK — In its latest Household Debt and Credit Report,
the Federal Reserve Bank of New York determined total auto loan balances in the
second quarter increased $20 billion from the previous quarter, the ninth
consecutive quarterly increase and the largest quarter-over-quarter increase
since 2006.

In the last nine quarters, the New York Fed discovered auto
loan debt has grown $108 billion and the total eclipsed the $800 billion dollar
mark for the first time in nearly five years. The last time was during the
third quarter of 2008.

Analysts indicated auto loan originations increased $14
billion in the second quarter to $92 billion, the highest level since Q3 of
2007.

Moreover, officials highlighted the percent of auto loan
balances 90-days delinquent fell to 3.6 percent in Q2 2013, the lowest level in
five years.

The quarterly report is based on data from the New York
Fed's Consumer Credit Panel, a nationally representative sample drawn from
anonymized Equifax credit data.

In Q2, the New York Fed noted total household indebtedness
fell to $11.15 trillion; 0.7 percent lower than the previous quarter and 12
percent below the peak of $12.68 trillion in Q3 2008.

Mortgages, the largest component of household debt, fell $91
billion from the first quarter, according to officials.  

"Although overall debt declined in the second quarter,
households did increase non-housing debt, led by rising auto loan balances,"
said Andrew Haughwout, vice president and research economist at the New York
Fed.

 "Furthermore,
households improved their overall delinquency rates for the seventh straight
quarter, an encouraging sign going forward," Haughwout continued.

The report showed the percent of 90-day delinquent balance
for all household debt declined to 5.7 percent from 6.1 percent in Q1. 

Additionally, the delinquency rate for every individual
component of household debt declined from the first quarter:

—Mortgages: 4.9 percent from 5.4 percent
—Home equity line of credit: 3 percent from 3.2 percent
—Credit card debt: 10 percent from 10.2 percent
—Student loan debt: 10.9 percent from 11.2 percent   

Other highlights from the report include:

—Outstanding student loan debt increased $8 billion to $994
billion.

—Credit card balances increased $8 billion to $668 billion.

—Total mortgage debt decreased to $7.84 trillion from $7.93
trillion.  

—Home equity line of credit balances fell $12 billion to
$540 billion.

—Mortgage originations rose to $589 billion, the seventh
consecutive quarterly increase.

—200,000 individuals had new foreclosure notations added to
their credit reports, the first increase since Q1 2012 but still 65 percent
below the peak in Q2 2009.

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