Rob Beck: Well, it’s not just one factor. I mean look, we — naturally when we tightened, we reduced the lower FICO and increase the percentage to higher income bands. I think that’s just a natural effect of when you’re tightening. So, it’s kind of all built into the mix. But obviously employment is a factor. Industry, states perform differently. We have all these cuts in our underwriting models. In fact, hundreds and hundreds of cells where we look at what the returns are and whether that’s small loan, large loan, check, digital loan, homeowner, renter by state, we have all those cuts. And we’ve talked about tightening since the fourth quarter of 2022 where we really tightened. But we’ve been tightening throughout 2022 but inflation shot up to 9%.
But ever since fourth quarter 2022 and every quarter that goes by, we’re constantly turning the dials in reaction to what we see in all those individual segments and cuts that we have. And so we feel good that we’re making the right decisions and putting on the assets that will hit a hurdle even under stress — additional stressed environment, and we’re putting on in the end the highest confidence assets each and every quarter.
John Hecht: Great. Thank you very much.
Operator: The next question is from Vincent Caintic from [indiscernible]. Your line is open.
Unidentified Analyst: Hi. Thanks for taking my question. Good afternoon. Thanks for all the detailed guidance that you’re giving in the fourth quarter and lay out in the slides is really very helpful. And first, just wondering the trends that we’re seeing in the fourth quarter, just if that’s a good jumping off point when we think about 2024 going forward. I know, it’s a little bit ways away. But when you think about the revenues the credit performance and your expense controls just wondering, if that’s a good jumping off point in the fourth quarter? Thank you.
Rob Beck: Yes. I mean, naturally you’ve got to look at fourth quarter and project out from there. And we’re not giving specific guidance at this point in time for next year. Naturally, we’re still in the middle of our budget process. But I think most importantly is, those vintages that we said originated at fourth quarter 2022 and sooner is going to be about 80% of the book by the end of this year. A couple more months of seeing how those vintages perform is going to help give us better guidance for all of you as to what we might expect next year. What we do know is the 20% of the book that is pre fourth quarter 2022 that those vintages and some have called it a back book, those vintages are going to create stress in the early part of next year.
By the very nature, they’ve been matured renewed where they could be renewed paid off and there’s still a lot of good customers in there, but there’s also customers in there probably disproportionately that are under some form of borrower assistance program, which for us is important for them to stay active and engaged particularly leading up to tax season. So if we sit here right now and say, what is the credit profile look like for next year, I don’t think anybody can predict precisely particularly given some of the macro events. But what I think we can say is, there will be some stress from those earlier vintages that the more recent vintages are performing well and we haven’t seen anything there that is causing concern, and I think the things that will make a difference for next year will be what’s the tax refund season look like.
I think that’s always a big help and a lever very beginning of the year, and we will ring-fence those assets and make sure we put everything against collecting against them. And then of course, if there’s any other macro stresses that might be out there, probably the one that we’re all kind of looking at is, is there any results or contagion from the Middle East that ends up hitting oil prices. So that would be the one thing we would be looking at as we get close here to the end of the year and figuring out what next year looks like.
