October Update: Shutdown Impact Emerges in Consumer Unsecured

dv01’s October Consumer Unsecured Performance Report is now live. This month marked the first broad underperformance in over two years, driven largely by the historic government shutdown.

Quick Insights

• Shutdown Impact: Impairments in VA/MD/DC widened to nearly 100 bps above national levels—an effect similar to post–natural disaster patterns.

• New Impairments Surged: Overall (+28 bps) and First-Time (+18 bps) new impairments rose materially more than seasonal trends.

• Modifications Drove the Increase: As with hurricanes, the jump was almost entirely from temporary modifications, not delinquencies.