ATLANTA — Subprime auto lending has been fairly stable since 2012, and is not in danger of creating “the next bubble,” according to a recent report released by Equifax.

The firm’s monthly Economic Trends Commentary, authored by Chief Economist Amy Crews Cutts and Deputy Chief Economist Dennis Carlson, examines the highly-publicized notion that subprime auto lending is creating a bubble.

"The lending landscape today is not the same as it was in 2007 — both because lenders generally have a reduced appetite for risk and because regulatory scrutiny has increased," said Dennis Carlson, deputy chief economist at Equifax. "In this commentary, we discuss why we believe that while the subprime lending segment needs to be monitored carefully — the evidence at this time does not suggest there is a bubble forming."

Using proprietary data from one of the Equifax databases, Cutts and Carlson reveal that originations have been shifting toward the higher end of the subprime credit-score spectrum and that recently opened subprime loans have been performing well year-to-date.

To read the report, click here.