Credit delinquencies over 90 days jumped by 109 percent among superprime borrowers and 47 percent among prime borrowers, according to an Aug. 25 VantageScore report.
“Consumers in the highest VantageScore credit tiers are showing increased signs of credit stress on a year-over-year basis,” Susan Fahy, executive vice president and chief digital officer at VantageScore, said in a statement.
Mortgage and auto loans represent the highest percentages of delinquencies with 0.11 points and 0.05 points, respectively. The report indicates taht auto loans and mortgage balances also increased on a month-over-month basis. While originations held steady for mortgages, they declined for auto loans.
Auto loan originations fell to 1.42 percent in July, down from a peak of 1.76 percent in April. Mortgage originations remained flat from June to July, but were 0.04 percent higher than in July 2024. The report indicates that the softening trends may be due to a reduced demand along with more stringent lending policies….