Marine bankers report increased loan volume in Q1

CHICAGO, Ill. — The National Marine Bankers Association (NMBA) conducted a quarterly survey in April to gauge changes in the lending environment and identify trends that could be used for business planning.

Thirty percent of the NMBA lender members responded to the survey, including loan originators/brokers, financial service firms, and banks, with the majority having a national presence.

All respondents indicated dollar volume of loans booked in the first quarter of 2011 is up over the same period last year. When asked about their outlook for second quarter, 92 percent indicated they expect business to increase over the same period in 2010. Other responses indicate credit quality is up while lending criteria is mostly the same or less stringent. All respondents reported a more positive mood among retail buyers, and 75 percent experienced increased interest in boat loans.

Report results include:

How does dollar volume of loans booked in the first quarter of 2011 compare to the first quarter of 010?
100% responded:  volume was up

What percentage of dollar volume of loans booked the first quarter of 2011 is on new boats?
64% responded:  <26% 27% responded:  26-50% 9%   responded:  >75%

What percentage of dollar volume of loans booked the first quarter of 2011 is refinance business?
77% responded:  <26% 15% responded:  26-50% 8%   responded:  >75%

What percentage of new and pre-owned purchases do you think are being financed in your market today?
23% responded: <26% 15% responded: 26-50% 46% responded: 51-75% 15% responded: >75%

What is your outlook for the second quarter of 2011 compared to the second quarter of 2010?
92% expect loan business to be up
8% expect loan business to be about the same

How does lending criteria the first quarter of 2011 compare to the fourth quarter of 2010?
9%  stated they feel criteria is more stringent
18% less stringent
73% feel criteria is about the same

How does credit quality the first quarter of 2011 compare to the fourth quarter of 2010?
69% responded they believe credit quality is better
8%   responded credit quality is worse
23% responded credit quality is about the same

Based on your company’s participation, or feedback from your dealer/loan originator clients, how would you compare 2010 winter boat shows to 2009 winter boat shows?
77% responded that retail traffic was higher
100% stated there was a more positive mood among retail buyers
75%   stated there was more interest in boat loans

How do you feel 2010 winter boat show season compares to that of 2009 in terms of application activity?
58% responded: up
8%  responded: down
33% responded: about the same

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