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Serious delinquency rates for accounts 60 or more days past due
were little changed across loan types, but forbearance programs
and stimulus payments have been helping consumers stay liquid in
the short term, said Matt Komos, vice president of research and
consulting at the credit monitoring firm.
"While these programs are providing consumers with temporary
relief, banks and lenders are looking for further regulatory
guidance as to what next steps should be taken once stimulus
packages dry up," he said. "We are likely to have a better sense
of the true financial health of consumers impacted by COVID-19
in the coming months."
Another early indicator points to a steeper deterioration of
credit quality. The percentage of credit cards considered in
hardship, or having a deferred payment or frozen account, rose
to 3.2% from 0.1% in March and 0.03% a year earlier. Five
percent of mortgages were considered in hardship, up from 0.5%
in both March and the year ago period.
The hardship numbers may still be understated as some major
lenders have promised to protect customers from negative credit
impacts related to the pandemic. Large lenders including Bank of
America Corp <BAC.N> and Citigroup Inc <C.N> have said they
would not immediately report participation in COVID-19
assistance programs to credit reporting agencies.
(Reporting by Imani Moise; Editing by Richard Chang)
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