Developments in the Credit Score Distribution Over 2020

Posted: 14 May 2021 Last revised: 17 Jun 2021

See all articles by Sarena Goodman

Sarena Goodman

Board of Governors of the Federal Reserve System

Geng Li

Board of Governors of the Federal Reserve System

Alvaro Mezza

Board of Governors of the Federal Reserve System

Lucas Nathe

affiliation not provided to SSRN

Date Written: April, 2021

Abstract

The distribution of household credit risk can vary with aggregate economic and credit conditions. For example, the share of subprime-scored borrowers declined at a relatively steady pace during the economic recovery from the Global Financial Crisis. Although the COVID-19 pandemic interrupted the economic conditions that supported this trend, the pace of decline accelerated following the pandemic’s onset in March 2020. The analysis that follows suggests that this acceleration was largely driven by the Coronavirus Aid, Relief, and Economic Security Act’s (CARES Act) forbearance provisions.

Suggested Citation

Goodman, Sarena and Li, Geng and Mezza, Alvaro and Nathe, Lucas, Developments in the Credit Score Distribution Over 2020 (April, 2021). FEDS Notes No. 2021-04-30, Available at SSRN: https://ssrn.com/abstract=3845841 or http://dx.doi.org/10.17016/2380-7172.2902

Sarena Goodman (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Geng Li

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Alvaro Mezza

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Lucas Nathe

affiliation not provided to SSRN

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