ABA Reports Consumer Delinquencies Increase for Q2 2011

The American Banker's Association released their Q2 2011 consumer loan delinquency statistics. A delinquency is a loan payment that is 30 days or longer late. No surprise, people late on payments or defaulting increased for Q2 2011.

Consumer delinquencies continued to move higher in this year’s second quarter, with nine of eleven loan categories showing slightly higher delinquencies amid weak job creation and a slowing economy.

The ABA blames....(no duh), the jobs crisis. No job, people cannot pay their bills, it's as simple as that. The ABA also blames increases in food and gas. Indeed, groceries are up 6% for the year and gas prices have increased 32.4% from last year.

Delinquencies are on the rise but still not as bad as a year ago.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, increased 17 basis points to 2.88 percent of all accounts in the second quarter. That compares to 3.00 percent in the second quarter of 2010.

Here's the breakdown in ABA delinquency rates for Q2:


Increased Delinquencies:
  •      Personal loan delinquencies rose from  3.05 percent to 3.12 percent.
  •      Direct auto loan delinquencies rose from 1.20 percent to 1.23 percent.
  •      Indirect auto loan delinquencies rose from 2.72 percent to 2.89 percent.
  •      RV loan delinquencies rose from 1.26 percent to 1.42 percent.
  •      Marine loan delinquencies rose from 1.76 percent to 1.83 percent.
  •      Property improvement loan delinquencies rose from 1.02 percent to 1.07 percent.
  •      Home equity loan delinquencies  rose from 4.12 percent to 4.38 percent.

Decreased Delinquencies:
  •      Mobile home loan delinquencies fell from 3.74 percent to 3.62 percent.



Increased Delinquencies:
  •      Home equity lines of credit delinquencies rose from 1.80 percent to 1.91 percent.
  •      Non-card revolving loan delinquencies rose from 0.96 percent to 1.11 percent.

Decreased Delinquencies:
  •      Bank card delinquencies fell from 3.40 percent to 3.22 percent.

While details are not given, the ABA seems to imply their statistics are seasonally adjusted as well as based on the actual number of open accounts. This implies charge-offs, closed accounts, foreclosures are not part of these statistics.

The ABA also gives a magic secret decoder ring for loan categories:


Indirect auto loan:  loan arranged through a third party such as an auto dealer.
Direct auto loan:  loan arranged directly through a bank.
Delinquency:  late payment that is 30 days or more overdue.
Bank card:  a credit card provided by a bank.
Closed-end loan:  a loan for a fixed amount of money with a fixed repayment period and regularly scheduled payments.
Open-end loan:  a loan with a fixed amount of available credit but a balance that fluctuates depending on usage such as a line of credit.

In other news, the Obama administration is enabling robo calling to cell phones to harass people on paying back their student loans. Right o. Harass these people to death, demanding they pay back loans with money they do not have. On top of that, make sure to not enact policy or legislation to get them jobs.

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