WASHINGTON, D.C. — The American Bankers Association recently discovered that delinquencies for both direct and indirect auto loans dropped from the previous quarter.

ABA found that direct auto loan delinquencies fell nearly half a point to 2.04 percent from 2.46 percent. Meanwhile, indirect delinquencies dropped to 3.15 percent from 3.26 percent.

"It's always a good sign when delinquencies decline, but they're still relatively high," noted James Chessen, ABA chief economist. "Until the economy generates more jobs and the housing sector stabilizes, they're likely to stay that way."

Looking at overall credit trends, the ABA's Consumer Credit Delinquency Bulletin found an improvement across seven loan categories, marking the first time since 2007 that so many loan categories showed delinquency declines.

The composite ratio, which tracks eight closed-end installment loan categories, fell 12 basis points to 3.23 percent of all accounts compared to 3.35 percent of all accounts in the previous quarter.

The ABA defines a delinquency as a late payment that is 30 days or more overdue.

Bank card delinquencies fell 24 basis points to 4.77 percent of all accounts. 

Chessen said the delinquency news was positive, but the weak economy and job losses continue to weigh on consumers.

"Delinquencies may be near their peak as job losses have slowed. Consumers are working hard to get their financial houses in order by spending less, saving more and paying down debt. But there's still a bumpy road ahead with many people unemployed and family budgets stretched to their limits," Chessen said.

Chessen also attributed the lower delinquency rates to banks writing off bad loans.

"Banks are putting losses behind them, setting the stage for expanded lending to consumers as the economy recovers," he said.

Perhaps not surprisingly, housing-related loans continued to show stress. Home equity loan delinquencies hit another record, jumping 29 basis points to 4.30 percent of all accounts. 

Home equity lines of credit delinquencies also hit a new record, rising 20 basis points to 2.12 percent of all accounts. Mobile home delinquencies, meanwhile, increased to 3.63 percent of all accounts from 3.53 percent of all accounts in the previous quarter.

The ABA offered a breakdown of all its findings:

Increased Delinquencies:

—Home equity loan delinquencies rose from 4.01 percent to 4.30 percent.

—Mobile home loan delinquencies rose from 3.53 percent to 3.63 percent.

Decreased Delinquencies:

—Direct auto loan delinquencies fell from 2.46 percent to 2.04 percent.

—Indirect auto loan delinquencies fell from 3.26 percent to 3.15 percent.

—Marine loan delinquencies fell 2.28 percent to 2.21 percent.

—Personal loan delinquencies fell from 3.90 percent to 3.74 percent.

—Property improvement loan delinquencies fell from 1.79 percent to 1.66 percent.

—RV loan delinquencies fell from 1.72 percent to 1.64 percent.