Our Credit Risk insights from Q2 2025 are here!
Performance improved across several consumer lending asset classes in the 2nd Quarter. Credit card delinquencies continued to fall, with recent originations are performing better than originations from late 2021 and 2022 vintages. Subprime auto delinquencies have been a concern for the past few quarters but have seen recent stabilization. Personal loan risk levels remain low and stable.
The federal student loan delinquency story remains tumultuous, with the high inherent risk of the loans compounded by inconsistent reporting to bureaus. Delinquency rates on federal SLs stabilized over the past two months but did so at a very high level.
Balancing these factors, many lenders are planning cautious lending expansion in the 2nd half of the year.
Please reach out to Scott Barton, Dave Wasik, or Walker Flythe if you have any questions or want to discuss the latest industry trends.