Tracking DQ and Modified Loans Over Six-Month Period, Jan 2025

Delinquent and modified loan performance doesn’t stop at 30, 60, or 90 days. With dv01’s loan-level tracking, you can monitor these loans over a longer time horizon, uncovering deeper trends and long-term outcomes the market might be missing.

Our latest research examines Non-QM, Consumer Unsecured, and Subprime Auto loans using a six-month time horizon, providing a clearer picture of borrower behavior. We distinguish whether a loan is Current due to full repayment or reduced payments and track performance improvements through January 31, 2025.

Quick Insights

• Non-QM: The sector has underperformed over the past year, and that trend has now translated into weaker long-term outcomes. The share ofNegative Outcomes has climbed to 29.3%, marking a multi-year high.

• Consumer Unsecured: Performance improved, with Positive Outcomes increasing to 39% (up from 24% six months ago).

• Subprime Autos: While Negative Outcomes rose to 33.8% (up from 27.4% six months ago), they are at similar levels as last year. This suggests deterioration is seasonal rather than a broader shift in credit performance.