Mortgage Daily Logo
mortgage news from industry experts

HEL Delinquency Reaches Another Record

HEL Delinquency Reaches Another Record3.52% Q1 HEL delinquency

July 7, 2009

By MortgageDaily.com staff

Rising unemployment is driving consumer loan delinquency higher.

During the first quarter, 30-day home-equity loan delinquency was 3.52 percent, the American Bankers Association reported today in its Consumer Credit Delinquency Bulletin.

HEL delinquency climbed from 3.03 percent in the fourth quarter and just 2.34 percent a year earlier.

Late payments on home-equity lines-of-credit increased to 1.89 percent from the prior quarter’s 1.46 percent and the prior year’s 1.10 percent.

The trade group said home-equity delinquencies “hit record highs.”

Mounting job losses drove the deterioration, ABA Chief Economist James Chessen said in the statement. And he doesn’t see any improvement in the foreseeable future.

Chessen noted that the loss of home-equity has borrowers using bank cards to bridge a temporary income gap.

On property improvement loans, first-quarter delinquency fell to 1.46 percent from 1.75 percent in the fourth quarter. Mobile home late payments jumped, however, to 3.70 percent from 2.96 percent.


next storyback to current headlines

 

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION