Tag Archives: Home Equity Lines of Credit

ATTOM's latest Residential Property Mortgage Origination Report showed purchase lending led the way in Q2, spiking nearly 30%, while overall refinance and home equity activity also rose after eight straight quarterly declines.

The latest OCC Mortgage Metrics Report found that 97.2% of mortgages included in the report were current and performing at the end of Q3 2022. Click through to learn how this compares to last year’s metrics.

Mortgage debt makes up a noticeably smaller share of total consumer debt than it did a decade ago, according to the latest Equifax National Consumer Credit Trends Report, covering data for March 2018. According to the Equifax report, mortgage debt ...

The delinquency rate among HELOCs originated right before the bubble has shot up—and the trend is likely to continue.

As typical mortgage originations falter and fade to black and refinances continue to go untapped, lenders are gearing up for the next big thing among mortgage loans: home equity lines of credit (HELOCs).

Some in the industry have expressed concern that a large number of borrowers with legacy HELOCs will default because they cannot handle the payment shock that awaits them when they reach their end-of-draw period. How are they handling it so far?

While outstanding HELOC balances have plummeted nationwide since 2009, data shows for the most part they are declining only at the 20 largest financial institutions.

"Despite the continuing rise in overall subprime originations, banks are still greatly limiting their high-risk exposure," Cutts said. "The credit score of the borrower at the 10th percentile of newly originated first mortgages today is 650. For HELOCs, it's 700."

Home equity lines of credit (HELOCs) originated during the housing bubble years of 2005 to 2007 have either reached or will soon reach their 10-year "end of draw" period, at which point borrowers will face a payment shock that may cause delinquency rates among HELOCs to rise substantially.

Since their 1.81 percent high in 2009, HELOC delinquencies are down to prerecession levels, the study shows. The percentage of HELOCs that are in late-stage delinquency, 90–180 days past due, are down to 0.5 percent which is a positive sign for the industry.