Consumer loan delinquencies are on the mend, dropping in eight of 11 loan categories, according to the American Bankers Association.
Marine loan delinquencies fell 58 basis points to 1.63% in the fourth quarter of 2009, while bank card delinquencies dropped 38 basis points to 4.39%.
On the auto side, 30-day late payments improved 10 basis points for direct loans, to 2.04%. Remarkably, direct loan delinquencies have declined to below-historical norms.
What’s troubling is the delinquency pattern for indirect auto loans. The ABA tracked fourth-quarter delinquencies at 3.15%, flat with the prior quarter.
Take a look at this chart:
Granted, we’ve seen improvement for most of 2009, but the bottom line is that indirect delinquencies are still about a point higher than they have been for the past decade.
Will indirect delinquencies continue to improve, or will 3% become the new norm?
