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.
More F&I

Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
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 →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
F&I Training Fundamentals
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
Not Just Any Tire Will Do
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →