The national composite default index dropped by seven basis points from February to March, its first month-over-month decline in eight months, led by declines in both mortgage default indices, according to S&P Dow Jones Indices and S&P/Experian Consumer Credit Default Indices for March 2015 released Tuesday. The composite index, which includes first and second mortgage defaults as well as those on bank cards and auto loans, fell from 1 point 12 percent in February down to 1 point 05 percent in March.
The first mortgage default rate declined for the second straight month, falling eight basis points down to zero point 92 percent, and is nearing its record low of zero point 88 percent set in July 2014. The second mortgage default rate declined by 16 basis points, down to zero point 50 percent. The decline in mortgage default rates helped bring the composite index down for March, offsetting a large increase in the bank card default rate.
President Barack Obama has threatened to veto a proposed amendment to the Consumer Financial Protection Act of 2010 that the White House claims would reduce the amount of funding the CFPB Director can request. The bill calls for the establishment of advisory boards within the CFPB for small businesses, credit unions, and community banks to consult with the Bureau. The White House said, "These reductions to the caps could result in, among other things, undermining critical protections for families from abusive and predatory financial products."
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