Performance Report: Consumer Credit, August 2022

The latest installment of our Consumer Credit Performance Report is now available, with data through August 31, 2022.

What's New: 

• All sectors: We've adjusted how we categorize states to provide better granularity and insights into regional performance.

• Subprime Auto Only: We've analyzed impairments by income and loan age. 

Quick Insights:

• Consumer Unsecured: Impairments among young loan ages have started to decline, suggesting that the tightened credit box seen throughout the year is positively impacting performance (page 9).

• Non-QM: Total Impairments fell 20 bps MoM to 3.9%, driven by falling New Impairments rates coupled with rising cure rates (page 17), and CPR has fallen to their lowest levels (page 20).

• CRT: Total Impairments declined 8 bps MoM, fully reversing last month's increase (page 23).

• Subprime Auto: There have been no material shifts in impairments by loan age—a powerful indicator that the sector did not have the same deterioration in performance due to weaker underwriting throughout 2021 (page 31).