Origination Report: Unsecured Personal Loans & Autos, August 2022

The latest installment of the dv01 Origination Report is now available. We added analysis on the subprime auto sector for the first time, and adjusted the geographic groupings when analyzing originations by state. Because there is a data lag between auto origination and securitization, dv01 has set the data cut-off to May 31, 2022; the data cut-off for consumer unsecured is August 31, 2022.

Below are some quick insights:

• Consumer Unsecured: Historically, August originations grow on average 5% MoM; this year it grew 6.7% (page 2).

• Consumer Unsecured: For the first time in three years, incomes grew faster than inflation, rising 1.4% MoM and 10.5% YoY over the past three months. This suggests a concerted effort to target higher-income borrowers (page 5).

• Subprime Auto: Originations peaked in March 2021 and have dropped significantly since (page 10).

• Subprime Auto: Originations by LTV have not changed materially since 2021, suggesting underwriters have maintained good discipline in the face of rising auto prices (page 13).