Bank HEL Delinquency Soars

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MORTGAGE EXPERT
10 · 04 · 18

Quarterly performance on bank-owned home-equity loans substantially deteriorated. Delinquency was down, though, for mobile home and property improvement loans.

Delinquency of at least 30 days on consumer credit that is held by
banks ended the first half of this year at 1.76 percent. The rate reflects performance on eight closed-end categories.

Compared to three months previous, consumer delinquency increased 3 basis points. The deterioration was even worse versus one year earlier, with the rate soaring 12 BPS.

The American Bankers Association delivered the data Thursday.

Thirty-day delinquency on home-equity loans closed out June at 2.43 percent, surging 12 BPS from the first quarter
and 15 BPS worse than the second-quarter 2017.

“Despite the upward blip in home-equity delinquencies this quarter, the trend continues in the right direction,” ABA Chief Economist James Chessen said in the report.

On
home-equity lines of credit, the 30-day rate inched up a basis point to 1.15 percent. However, HELOC delinquency was off by a basis point from mid-2017.

Mobile home delinquency improved 2 BPS to 5.07 percent. But the rate has soared 59 BPS on a year-over-year basis.

Of all real estate-related credit types, property improvement loans had the biggest delinquency decline: 9 BPS to 1.07 percent. Still, the rate remained 3 BPS higher than the report from a year ago.

Chessen added, “Home-related delinquencies are back down to pre-recession levels.”

Mortgage Expert

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