Consumer lending

Recent data from the Federal Reserve suggests lenders are growing pessimistic about the credit environment. But is that a sign of trouble ahead, or just sound risk management?

Refinance volume slipped following growth in mortgage rates, and loans refinanced through the Home Affordable Housing Program barely made a dent in overall volume, according to the Federal Housing Finance Agency.

Mortgage delinquencies in the fourth quarter were at their lowest level in nearly 19 years, helped by wage growth, low household debt and low unemployment, the Mortgage Bankers Association said.

The government-sponsored enterprises are going through a transition period. From proposals for rebuilding their capital cushions to tackling shortages in affordable housing, Fannie Mae and Freddie Mac face a number of key challenges with wide-ranging consequences this year.

Late payments on loans backing commercial mortgage bonds continued falling at the start of the year, due to strong new issuance volume and continued resolutions for precrisis loans by special servicers, according to Fitch Ratings.

Better credit quality and the influx of refinancing during the low interest rates of the last few years pushed mortgage performance to the highest levels since the turn of the century, according to Black Knight.

Risk aversion, economic momentum and the multidecade nadir of unemployment rates helped push delinquencies to the lowest year-end measure of the 21st century, according to Black Knight.

Loans grew 6% at JPMorgan Chase, but the bank is "not going to be stupid" and assume that will last forever, its CEO says. Here are some precautionary steps it's taking.

Consumer lending should also be a bright spot, while mortgage lending could be suppressed by rising rates and tight housing supplies.

Continual declines in the refinance share of mortgage originations led to prepay rates dropping to their lowest levels since 2009, according to Black Knight.