Household debt in the United States increased at the fastest pace since 2007, according to Bloomberg, at a 5.2% annual rate. The increase comes amid a 3% gain in mortgage borrowing and a 3.8% rise in consumer spending. Researchers at the Federal Reserve and University of California warn, in a new study, America’s rapidly expanding non-bank mortgage lenders are vulnerable to the same kinds of liquidity pressures that caused them to fail during the financial crisis, according to the Financial Times.
