The delinquency rate for loans to consumers to buy RVs fell in the fourth quarter of 2009 and represented the best performing of 11 indices tracked by the American Bankers Association (ABA), the ABA’s Credit Delinquency Bulletin reported on Wednesday (April 7).
RV loan delinquencies fell from 1.64% to 1.44%, one of eight categories to show improvement in the quarter.
Consumer loan delinquencies fell in eight of 11 loan categories in the quarter, marking the second quarter in a row of broad-based improvement.
The ABA report defines a delinquency as a late payment that is 30 days or more overdue.
ABA Chief Economist James Chessen said the news is a strong indication that the economy is on an upswing.
“The fall in consumer delinquencies is a very positive and hopeful sign. Clearly, consumers are shoring up their finances and banks are putting losses behind them. Overall, there is a prudent approach to credit,” he said.
By category the results were as follows:
The fourth quarter composite ratio is made up of the following eight closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
- Direct auto loan delinquencies fell from 2.04% to 1.94%.
- Marine loan delinquencies fell from 2.21% to 1.63%.
- Mobile home loan delinquencies fell from 3.63% to 3.41%.
- Personal loan delinquencies fell from 3.74% to 3.63%.
- Property improvement loan delinquencies fell from 1.66% to 1.63%.
- RV loan delinquencies fell from 1.64% to 1.44%.
- Indirect auto loan delinquencies remained at 3.15%.
- Home equity loan delinquencies rose from 4.30% to 4.32%.
In addition, ABA tracks three open-end loan categories:
- Home equity lines of credit delinquencies fell from 2.12% to 2.04%.
- Bank card delinquencies fell from 4.77% to 4.39%.
- Non-card revolving loan delinquencies increased from 1.40% to 1.46%.
For a complete look at the ABA report, click here.