Receivables

The financial crisis that began in 2007 has taken a toll on business, consumer and real estate lending by finance companies, with total receivables (i.e., loan amounts) outstanding dropping by 31 percent from 2007 to 2011. Assets in outstanding consumer loans that were securitized by finance companies and sold to investors dropped by 75 percent during the same period, reflecting investor wariness in securitized loans after the financial crisis triggered higher defaults rates than expected. Assets in securitized business and real estate loans fell by 59 percent and 27 percent, respectively, during the same period.

TOTAL RECEIVABLES OUTSTANDING AT FINANCE COMPANIES, 2007-2011 (1)

($ billions)

  2007 2008 2009 2010 2011 Percent change,
2007-2011
Total volume ($ billions)            
Total outstanding $2,084.1 $1,934.6 $1,634.3 $1,505.4 $1,443.9 -30.7%
Consumer 911.7 859.2 722.8 667.8 659.7 -27.6
Real estate 574.4 502.0 447.9 390.4 342.7 -40.3
Business 598.0 573.3 463.6 447.2 441.4 -26.2
Percent change from prior year (2)            
Total outstanding 1.8% -7.2% -15.5% -7.9% -4.1% NA
Consumer 7.4 -5.8 -15.9 -7.6 -1.2 NA
Real estate -4.3 -12.6 -10.8 -12.8 -12.2 NA
Business 0.0 -4.1 -19.1 -3.6 -1.3 NA

(1) Includes finance company subsidiaries of bank holding companies but not retailers and banks. Includes owned receivables (carried on the balance sheet of the institution) and managed receivables (outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator). As of May 2012.
(2) Calculated from unrounded data.

NA=Not applicable.

Source: Board of Governors of the Federal Reserve System.

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BUSINESS RECEIVABLES OUTSTANDING AT FINANCE COMPANIES, 2007-2011

($ billions, end of year)

            Percent of total
  2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Total $602.2 $608.3 $495.6 $474.3 $466.6 100.0% 100.0% 100.0% 100.0% 100.0%
Motor vehicles 105.7 95.1 63.4 68.1 66.8 17.6 15.6 12.8 14.4 14.3
     Retail loans 16.4 12.8 10.1 9.3 10.8 2.7 2.1 2.0 2.0 2.3
     Wholesale loans (1) 56.9 51.3 37.0 43.3 41.3 9.4 8.4 7.5 9.1 8.9
     Leases 32.4 31.0 16.3 15.4 14.6 5.4 5.1 3.3 3.2 3.1
Equipment 328.2 347.0 296.9 307.1 300.2 54.5 57.0 59.9 64.7 64.3
     Loans 111.4 115.9 92.2 113.1 112.9 18.5 19.1 18.6 23.8 24.2
     Leases 216.9 231.1 204.7 194.0 187.3 36.0 38.0 41.3 40.9 40.1
Other business receivables (2) 89.0 97.8 88.6 65.9 66.9 14.8 16.1 17.9 13.9 14.3
Securitized assets (3) 79.3 68.4 46.8 33.2 32.8 13.2 11.2 9.4 7.0 7.0
     Motor vehicles 33.6 27.4 12.4 5.9 5.9 5.6 4.5 2.5 1.2 1.3
          Retail loans 2.6 2.4 3.0 2.1 2.1 0.4 0.4 0.6 0.4 0.5
          Wholesale loans 30.9 25.0 9.4 3.8 3.7 5.1 4.1 1.9 0.8 0.8
          Leases 0.1 0.0 0.0 0.0 0.0 (4) (4) (4) (4) (4)
     Equipment 13.3 10.7 6.8 4.0 3.9 2.2 1.8 1.4 0.8 0.8
          Loans 9.4 7.1 3.4 1.1 1.1 1.6 1.2 0.7 0.2 0.2
          Leases 3.9 3.6 3.4 2.9 2.8 0.6 0.6 0.7 0.6 0.6
     Other business receivables (2)  32.4 30.3 27.6 23.3 23.0 5.4 5.0 5.6 4.9 4.9

(1) Credit arising from transactions between manufacturers and dealers, also known as floor plan financing.
(2) Includes loans on commercial accounts receivable, factored commercial accounts, and receivable dealer capital; small loans used primarily for business or farm purposes; and wholesale and lease paper for mobile homes, recreation vehicles and travel trailers.
(3) Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator.
(4) Less than 0.1 percent.

Source: Board of Governors of the Federal Reserve System.

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CONSUMER RECEIVABLES OUTSTANDING AT FINANCE COMPANIES, 2007-2011

($ billions, end of year)

  2007 2008 2009 2010 2011
Total consumer $891.1 $840.2 $703.0 $646.9 $630.6
Motor vehicle loans   261.5 247.7 205.6 185.1 181.0
Motor vehicle leases   122.9 111.1 85.4 72.7 77.9
Revolving (1) 86.0 74.4 46.4 71.9 78.1
Other (2) 236.5 253.7 235.8 261.5 247.3
Securitized assets (3) 184.1 153.3 129.9 55.5 46.3
     Motor vehicle loans 110.7 85.1 67.3 50.4 41.9
     Motor vehicle leases 3.1 2.7 2.3 2.0 1.7
     Revolving 25.6 25.5 24.1 0.1 0.1
     Other 44.7 40.0 36.2 3.0 2.6

(1) Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
(2) Includes student loans, personal cash loans, mobile home loans and loans to purchase other types of consumer goods such as appliances, apparel, boats and recreational vehicles.
(3) Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator.

Source: Board of Governors of the Federal Reserve System.

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REAL ESTATE RECEIVABLES OUTSTANDING AT FINANCE COMPANIES, 2007-2011

($ billions, end of year)

   2007 2008 2009 2010 2011
Total real estate $572.4 $483.9 $431.9 $374.4 $332.7
1 to 4 family 472.7 375.4 327.7 280.6 247.2
Other 59.1 72.5 69.7 63.6 56.0
Securitized real estate assets (1) 40.5 36.0 34.6 30.2 29.5
     1 to 4 family 34.9 31.0 30.3 29.6 29.0
     Other 5.6 5.0 4.3 0.6 0.5

(1) Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originator.

Source: Board of Governors of the Federal Reserve System.

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