8.12.22
Non-Prime Lenders Report Delinquency Upticks Across Consumer Credit Products
According to American Banker, banking executives were “largely positive” about the credit health of their mostly prime borrowers, while nonbank lenders with nonprime portfolios were less enthusiastic. TransUnion reported rising delinquencies in the second quarter, particularly among borrowers of unsecured personal loans, a product that has seen an increase in the number of nonprime borrowers. In the article, senior director at Fitch Ratings Michael Taiano commented that this early stage of credit deterioration will be influenced by whether the strong job market continues, and the impact of high inflation. Taino remarked that the last time inflation was at 9% was in the 1980s when “Americans had far less debt.”