Q1 Delinquencies Fall in 7 of 11 Loan Categories, ABA Reports
According to the American Bankers Association, indirect auto loan delinquencies were one of the categories to show a decrease, while delinquencies in the direct auto loan space showed an increase.
WASHINGTON, D.C. — Despite the mild slowdown in the economy during 2016’s opening quarter, 30-day or more delinquencies fell in seven of the 11 loan categories tracked by the American Bankers Association (ABA).
The association’s composite ratio, which tracks 30-day delinquencies in eight closed-ended installment loan categories, including loans originated through the indirect auto finance channel, fell three basis points to 1.38% of all account — continuing a three-year trend of remaining well below the 15-year average of 2.23%.
“More people have jobs, wages are higher, home values have increased and consumers didn’t overextend themselves during the holiday season,” said James Chessen, the ABA’s chief economist, adding that consumers “have shown a remarkable ability to ensure their debt levels are manageable.”
Home-related delinquencies fell in two out of the three categories, with home equity line delinquencies falling three basis points to 1.15% of all accounts. Home equity loan delinquencies, however, rose six basis point to 2.74% of all accounts, after falling 23 basis points in the previous quarter. Property improvement loan delinquencies fell three basis points to 0.89% of all accounts.
“The first quarter marks the first time since 2008 that both home equity loan and line delinquencies are at or below their 15-year averages,” the association noted.
In the auto space, indirect auto loan delinquencies fell from 1.54% in the year-ago quarter to 1.45%, while direct auto loan delinquencies rose from 0.75% to 0.81%. RV loan delinquencies fell from 0.96% in the year-ago period to 0.92%, while marine loan delinquencies fell from 0.92% to 0.89%.
Also in the closed-end category, personal loan delinquencies remained at 1.44%, while mobile home delinquencies rose from 3.16% to 3.41%.
In the open-end loan categories, bank card delinquencies fell from 2.52% in the year-ago period to 2.47%, while non-card revolving loan delinquencies fell from 1.63% to 1.57%.
The ABA’s Chessen said he expects low delinquencies levels to continue amid stable economic conditions in the United States. “With household wealth near an all-time high and economic fundamentals holding steady, delinquencies are likely to remain near these historic lows,” he said.
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →