The S&P-Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, recorded an increase of six basis points to 0.89% compared with the previous month.

The bank card default rate rose 25 basis points to 3.34%. The auto loan default rate increased ten basis points to 1.03%. The first mortgage default rate was three basis points higher at 0.67%.

"The economic pictures behind the three lending sectors, autos, mortgages and bank cards, reveal different patterns. Housing is pressured by rising prices and higher mortgage rates,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “Sales of both new and existing homes are weakening. Auto sales were steady in 2017 and 2018 at slightly more than 17 million vehicles sold each year. Retail sales and consumer spending saw continued growth in 2018 with few signs that credit tightening was having any impact."

All five of the major metropolitan statistical areas showed higher default rates in December 2018. The rate for Miami increased 41 basis points to 1.93% while the rate for New York rose 13 basis points to 0.96%. The default rate for Chicago was up four basis points to 0.88%. The rate for Dallas increased three basis points to 0.85% while for Los Angeles, the rate increased two basis points to 0.52%.

S&P-Experian Consumer Default Composite Indices (by MSA)

"Consumer credit default rates are giving a caution signal," said Blitzer. "It has been almost two years since default rates across the three sectors and all five cities tracked in this report rose together.

Reggora, an appraisal platform for appraisers and lenders, has secured $3 million in seed funding to help it expand across the U.S. and enhance its platform. The funding round was led by Spark Capital with participation from Boston Seed Capital, an early investor in the company.

[caption id="attachment_9077" align="alignright" width="300"] Denslow: Software provides lenders with more control than they've had up to now.[/caption]

"The primary reasons for delays during appraisals today revolve around basic manual processes such as finding the most qualified and available appraisers, scheduling inspections and following up to check on an order status," said Will Denslow, Reggora's co-founder and CTO. "Our software automates all of these elements and much more, providing the lender with greater control and transparency and allowing the appraiser to spend more time focusing on the critical part of the process: the appraisal itself."

Reggora brings greater efficiency to the home-appraisal process, allowing appraisals to be completed up to 40% faster for borrowers and mortgage lenders like banks or credit unions.

Regulations over the past 10 years have added complexity to the appraisal process—such as appraiser independence. Reggora's platform facilitates compliance with these regulations while reducing redundancies and manual processes and replace it with a platform that provides automated tools to complete appraisals.

"As technology continues to improve in the financial services sector, everything is becoming on-demand and easier for the borrower," said Brian Zitin, co-founder and CEO of Reggora. "However, getting a mortgage loan is still a slow process and getting an appraisal is a main contributor to that. Reggora aims to streamline things for everyone involved by bringing modern technology to the process." Alex Finkelstein, general partner at Spark Capital, will join Reggora's board.

Churchhill Mortgage has launched the Rate Secured program to lock eligible borrowers into an interest rate for 90-days after engaging with the lender, whether they have selected a home. The lender offers conventional, FHA, VA and USDA residential mortgages in 46 states.

Homebuyers today are increasingly challenged by rising interest rates, which can cause them to purchase a home before they are ready or decide not to enter the market at all. Churchill has unveiled its Rate Secured program to give borrowers increased peace of mind as they navigate the home-buying process.

“More than ever, borrowers need services such as these to help them make smarter mortgage decisions,” said Tom Gillen, senior vice president of secondary marketing for Churchill Mortgage. “Rate Secured allows borrowers to shop for their dream home with the confidence that their loan will close seamlessly, and at a rate they can plan around.”

If the borrower does not find a home within that timeframe, he can reset the rate for another 90 days, and more importantly, if interest rates should decrease during the lock time, the borrower will receive the lower rate at closing.

“In today’s rising interest rate environment, buyers are more hesitant to enter the market and are appropriately cautious towards any future changes,” said Mike Hardwick, founder and president of Churchill Mortgage. “Through Churchill’s Rate Secured program, we are empowering borrowers to better plan their home searches by eliminating any surprises relative to their financing, all of which helps ensure a smarter mortgage process and better borrower experience.”