FICO says delinquencies rise fastest where loan originations grow most
FICO•FICO said mortgage originations rose 26% year over year in Q2 2026, while mortgage delinquency increased 29 basis points to 1.56%. Personal loan originations grew 19.5%, and 60-day-plus delinquency reached 3.81%, up from 3.37% a year earlier.
1. Originations and delinquencies
FICO's credit origination analysis warned lenders to tighten risk discipline as delinquencies rise alongside lending volumes. Mortgage originations rose 26% year over year in Q2 2026, while mortgage delinquency climbed 29 basis points to 1.56%. Personal loan originations increased 19.5%, and 60-day-plus delinquency reached 3.81%, up from 3.37% a year earlier.
2. Risk assessment
FICO said growth was concentrated in subprime and super-prime borrowers, making targeted risk assessment critical. Origination decisions account for up to 80% of measurable lifetime account risk, underscoring the importance of affordability checks and ongoing monitoring.
