“We could very well see a coverage ratio that remains flat or only modestly declined, at least in the near term as we incorporate the related uncertainty into the allowance.”

In context

“like a number of factors are going into the allowance calculation. As Rich said, the projected loss rates are going to be by far the biggest driver. And as we've talked about many times, delinquencies are the best leading indicator of credit performance, particularly over the next couple of quarters. And I won't go through the reasonable and supportable and reversion process elements that we've discussed previously, but I will say beyond the credit forecast, it is worth noting that the allowance framework considers a range of outcomes and uncertainties, which are generally wider in periods of either worsening or improving transitions. So at the core of your question, even in a period where projected losses in future quarters may be lower than today and might otherwise indicate a release. We could very well see a coverage ratio that remains flat or only modestly declined, at least in the near term as we incorporate the related uncertainty into the allowance. And so we'll go through our process as we do every year to take all of those factors into account and roll forward the allowance each quarter. Jeff Norris: Next question please. Operator: Our next question comes from Mihir Bhatia with Bank of America. Your line is open. Mihir Bhatia: Hi. Good afternoon and thank you for taking my question. I was curious in terms of the health of the consumer, I was curious if you're seeing trends at all diverge between higher FICO and lower FICO scores, whether it's on credit performance or spending as we go through the recovery? Richard Fairbank: Yes, Mihir. Thank you for your question. So let's talk about credit performance. When credit first started to normalize, we called out that this trend was more pronounced at the low end of the market, whether de”