Origination Report: Consumer Unsecured and Auto, July 2024

As Consumer Unsecured Loans Rebound, Public Auto Securitizations Slow Down

While originations of unsecured personal loans continue to rebound from last year, the volume of auto originations has declined largely due to a decrease in securitization issuances overall.

Quick Insights

• Consumer Unsecured:

  Originations grew 5.3% MoM, in line with seasonal trends, and 13% YoY. This marks the first positive YoY comparison in nearly two years, highlighting the sector's recovery from last year. Most credit attributes loosened except for DTI + PTI, which continued to tighten.

• Subprime Auto: Originations by FICO scores have increased due to tighter underwriting, with a significant focus on higher-income borrowers. Despite rising car prices, LTV ratios have remained stable or even declined, indicating cautious lending practices.