DSNews The homepage of the servicing industry
Releasing data covering August 2022, Standard & Poor (S&P) and Experian published its monthly Consumer Credit Default Indices Report which intends to represent a “comprehensive measure” of changes in consumer credit defaults.
Of the three components of the report, the rate of default for first-lien mortgages remained steady at 0.42%; this number is up from August 2021 when the rate was 0.27%. The credit card default rate fell three basis points to 2.41% up from 2.35% a year ago, and the auto loan default rate was six basis points higher at 0.72% (up from 0.34% last year) resulting in a composite score of 0.57%.
The composite score has also risen from 0.39% in August 2021.
Three of the five major metropolitan statistical areas ("MSAs") showed higher default rates compared to last month. Dallas had the largest increase, up seven basis points to 0.69%. Miami and Chicago each rose three basis points, to 1.16% and 0.70% respectively. New York and Los Angeles each dropped seven basis points, to 0.58% and 0.45% respectively.
