The National Marine Lenders Association (NMLA) just released the 41st consecutive Annual Statistical Report. This is the only comprehensive report of recreational marine financing data in the U.S. and provides lenders with trends and data to understand, build and maintain quality marine lending portfolios.
The survey produces two distinct business line reports: 1) for banks, credit unions, thrifts and private lenders who originate and hold consumer boat loans, either retail, floor plan or both, and 2) for finance brokers, F&I outsourcers and service companies who originate consumer boat loans and refer them for funding.
Some noteworthy highlights from this year’s report include:
Bank and Credit Union Originators:
- The dominant age group of boat loan consumers continues to be 45-54 years old.
- The $100K - $150K household income tier had another strong response concentration in 2020 at 47%.
- An overwhelming majority of respondents underwrite boat loans at credit scores of 700 and above.
- 10% was the most common down payment offered for both new and pre-owned boats.
- Marine loans, as a percentage of all consumer installment loan annual volume and outstandings, increased significantly in 2019 and 2020.
- Marine loan delinquency and charge-offs typically outperform all other consumer installment loans. Respondents reported declines in both areas during 2020.
- Marine lenders have not yet adopted new funding technology, with 70% of respondents reporting no e-signature contracts in 2020.
- The 45-54 age segment retained the highest percentage of marine loan customers in 2020.
- Consumers with average incomes greater than $100k accounted for 93% of the respondent’s funded boat loans in 2020.
- Refinancing activity declined in six of the past eight years. 83% of the respondents reported they book 5% or less of their loans via refinancing.
- 40% of participating respondents reported more than half of their loan applications were taken online in 2020.
The report is complimentary for participants and is available for purchase by non-participants by visiting the NMLA website, www.marinelenders.org.