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Performance Report: Consumer Credit, July 2022

31 August 2022

Consumer Credit Report - july 2022

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autos
CRT
consumer unsecured
non-QM

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The latest installment of our Consumer Credit Performance Report is now available.

What's New: 

  • All sectors: 30+ New Impairments are broken into two metrics (Overall and First-Time) to distinguish newly distressed borrowers.

  • All sectors: A new metric (DQ Payment Made) is used to shed light on a delinquent borrower’s commitment to repay their debt despite not returning to Current.

  • Subprime Auto Only: Two new metrics (60+ DQ and 60+ Impairments) have been added because some participants consider a loan delinquent after they miss two payments—not one. While these metrics are added into charts, dv01’s commentary will continue to focus on 30+ DQs and 30+ Impairments.

 Quick Insights:

  • Consumer Unsecured: July prepayments declined higher than seasonal trends, likely attributed to increases in interest rates that stifle refinance opportunities (pages 10-12).

  • Non-QM:First-Time 30+ New Impairments increased faster than Overall 30+ New Impairments, suggesting new borrowers are becoming stressed (page 17).

  • CRT: S-curves flattened across rate incentives for the first time in over a year (page 27).

  • Subprime Auto: The DQ Payment Made rate has remained remarkably consistent over time, with no material changes throughout COVID and this year (page 31).

Stay up-to-date with the latest insights with data through July 31, 2022.


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