Raul Vazquez: Yeah. I mean, I would say just having read the comments of some of the other businesses in our sector, right, there seems to be an indication of stress across borrowers across all of the companies whose transcripts on read. I think it is a very challenging environment because we have had these higher prices for longer. We’ve had the volatility in fuel. The job market is starting to soften a little bit. So, I think those are things that we’re all dealing with from an industry perspective. In terms of what we look at, Sanjay, to try to ascertain the right level of originations, it’s exactly what you said. We look at the vintages, so we look at first payment defaults, we look at what do the roll rates look like, what do early delinquency trends look like in each of the vintages, and that’s how we go ahead and continue to make adjustments.
To be clear, we’ve been tightening throughout 2023, and, to be more specific, because I know you’re asking for specificity, it’s not just looking at approval rates, it’s looking at what is the average loan size, what is the average term, what is the distribution in terms of who we’re lending to. We shared in comments that Vantage scores over 660 now or 49% of our originations in Q2 of 2022, that was one-third. So, we are looking for higher cash flows, higher credit scores, and we’re reducing our exposure from an average loan size and average term with some of the segments of our borrowers, Sanjay.
Sanjay Sakhrani: Okay. Thank you very much.
Raul Vazquez: Thank you.
Operator: Thank you. Next question is a follow-up from Rick Shane from JPMorgan. Your line is now live.
Rick Shane: Thanks for taking my follow-up this afternoon. Just one thing. You guys have talked about some of the things that you’re seeing in the labor markets. I’m curious when you delve into it, if you’re seeing anything either on a geographic basis or on an industry basis that’s noteworthy? Are you seeing weakness in particular regions or particular job sectors?
Raul Vazquez: We’re not seeing differences today in terms of the regions that we would call kind of dramatic or noteworthy. From an industry perspective, I know there have been some areas where we have been tightening a little bit relative to other industries, Rick. So, we have seen some differences from an industry perspective.
Rick Shane: You want to be — to steel Sanjay word, could we get a little more specificity on that, or do you want to be — do you want to maintain the discretion on that?
Raul Vazquez: Yeah. Let me just follow up on the most recent numbers that we have on that, Rick, is — so just give me — we weren’t prepared to share that at this moment. So, just give me a few minutes, and we’ll try to make sure that we provide an update on that.
Rick Shane: Terrific. Thanks. It didn’t strike me as a question you would normally not. It struck me as a question you would normally answer. I was about to phrase that question like a quadruple negative. So, I was just a little surprised. So thank you. Happy to wait and hear the answer after you take another caller.
Raul Vazquez: Yeah, sure.
Operator: We reached the end of our question-and-answer session. I’d like to turn the floor back over to management for any further or closing comments.
Raul Vazquez: Well, I want to say thank you once again for joining us on today’s call, and we look forward to speaking with you again at the next quarter. Thank you very much.
Operator: Thank you. That does conclude today’s teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
