Mortgage Daily Logo
mortgage news from industry experts

Home Equity Lines Shine

Home Equity Lines Shine

ABA reports falling home equity loan delinquencies

March 24, 2004

By staff

In line with the rest of the mortgage market, home equity loan delinquencies improved during the fourth quarter — with lines of credit leading the way.

According to the latest American Bankers Association (ABAConsumer Credit Delinquency Bulletin, the rate of home equity loan delinquencies nudged down to 2.50% from the third quarter’s 2.52%.

Meanwhile, past due payments on home equity lines of credit decreased to 0.43% from 0.52%, said the ABA. This was the lowest delinquency rate of all the consumer loans ABA tracked, which included personal, auto and mobile home loans.

The delinquency rate on mobile home loans fell slightly to 5.56% from 6% in the previous quarter, the report said.

As all other consumer delinquencies declined, credit card delinquencies increased significantly to 4.43% from the previous record of 4.09% in the third quarter, said the Washington D.C.-based group.

Fourth quarter delinquency on all residential mortgages fell 16 basis points from the third quarter, according to the Mortgage Bankers Association of America’s (MBAs) recent National Delinquency Survey. The seasonally adjusted delinquency rate for one-to-four-unit residential properties was 4.49% — the lowest level since the second quarter in 2002.

Subprime mortgage delinquency fell 1.10% to 11.59% and FHA delinquency rose to 12.23%, according to MBAs survey — which was derived from 37.2 million loans serviced.

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...


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