Which method measures the roll of delinquency—whether it is increasing or decreasing?

Which method measures the roll of delinquency—whether it is increasing or decreasing?

• A. Static pool - measures origination and delinquency.
• B. Roll rates - measures the roll of delinquency - increasing or decreasing.
• C. Annualized charge offs.
• D. Net promoter score.

Answer: (B)

Roll rates capture how accounts move through delinquency stages over time, showing whether delinquency is increasing or decreasing. By tracking transitions from current to 30 days past due, then to 60 days past due, and so on, you can see the momentum—whether more accounts are slipping into worse delinquency or resolving. Static pool analysis looks at origination cohorts and delinquency at a single point in time, not the flow between stages. Annualized charge-offs measure losses that have been written off, not the direction of delinquency movement. Net promoter score gauges customer satisfaction, not delinquency dynamics. So, roll rates are the method that reveals the roll of delinquency over time.

Roll rates capture how accounts move through delinquency stages over time, showing whether delinquency is increasing or decreasing. By tracking transitions from current to 30 days past due, then to 60 days past due, and so on, you can see the momentum—whether more accounts are slipping into worse delinquency or resolving. Static pool analysis looks at origination cohorts and delinquency at a single point in time, not the flow between stages. Annualized charge-offs measure losses that have been written off, not the direction of delinquency movement. Net promoter score gauges customer satisfaction, not delinquency dynamics. So, roll rates are the method that reveals the roll of delinquency over time.