statistically, the number of loans with delinquent payments divided by the number of loans held in a portfolio. Sometimes, the rate is based on the total dollar volume of the loans instead of the number. Generally, delinquency is qualified to include only loans where payments are three or more months past due.
statistically, the number of loans with delinquent payments divided by the number of loans held in a portfolio. Sometimes, the rate is based on the total dollar volume of the loans instead of number. Generally, delinquency is qualified to include only loans where payments are 3 or more months past due.
Example: In January, ABC Savings reported 15 loans with delinquent payments of 3 or more months. Its loan portfolio at the beginning of the month included 300 loans. Its delinquency rate at the end of January was 5%.
