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Survey: 47% of Bankers Expect Mortgage Delinquencies to Decrease

More bank professionals expect mortgage delinquencies to decline over the second half of this year than to than to stay the same, according to an industry ""survey"":https://www.prmia.org/sites/default/files/references/FICO2ndQuarterJuly2013.pdf released Tuesday by ""FICO,"":http://www.fico.com/en/Pages/default.aspx a San Jose, California-based analytics software provider.

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This is the first time in the quarterly survey's history the number of professionals expecting mortgage delinquencies to decline outpaced those who expect it to remain the same.

Forty-seven percent anticipate a decrease in mortgage delinquencies over the last two quarters of the year.

Another 41 percent expect mortgage delinquencies to remain the same.

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The percentage of respondents who believe delinquencies on home equity lines of credit will stay the same is just a little higher than the percentage of those who expect it to decline.

About 45 percent expect home equity delinquencies to stay the same, while 42 percent expect them to decline.

""This is reassuring given the uncertainty regarding mortgage delinquencies shown in 2012 and 2011,"" FICO said in its report.

In addition to the anomalous mortgage predictions, this is the first time since the survey began in 2010 that a majority of respondents expect credit demand and credit supply to increase. Lenders ""expect demand and supply for consumer credit to reach equilibrium in the second half of 2013,"" according to FICO.

""After years of caution, lenders are now in growth mode and feeling good about extending credit,"" ""said"":http://www.prnewswire.com/news-releases/fico-survey-lenders-predict-us-consumer-credit-gap-will-disappear-214728841.html#prettyPhoto Andrew Jennings, FICO's chief analytics officer and head of FICO Labs.

He also noted that borrower behavior is ""even more intriguing,"" saying, ""It appears that borrowers are beginning to shed the frugal habits that helped them deleverage to the tune of more than a trillion dollars since 2008.""

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