Equifax Reports Delinquencies Decline in March

Total delinquent first mortgage balances are under $500 billion in March 2012, the lowest since January 2009, according to ""Equifax's"":http://www.equifax.com/home/en_us March National Consumer Credit Trends Report and ""Creditforecast.com"":https://www.creditforecast.com/default.aspx, a joint product of Equifax and ""Moody's Analytics"":http://www.moodysanalytics.com/.

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As of March 2012, the number of outstanding first mortgages was 49.5 million, a nearly 11 percent decrease from the March 2008 peak when it reached more than 55 million. According to the report, the decline was caused by high foreclosures, loan payoffs, and low homebuyer demand.

Of all the delinquent first mortgages, a staggering 71 percent were taken out in 2005-2007.

The number of mortgages rolling further into severe delinquency stages is decreasing, with the share mortgage loans transitioning from current status to 30-days past due at its lowest level since June 2007.

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The share of first mortgages rolling from 60 days to 90 days past due was at the lowest level in 59 months. Loans in the 90-plus stage or in foreclosure has been declining over the past 24 months as well.

Mortgage balances also shrunk 3.5 percent below their year-ago level in March, posting the 36th consecutive month of year-over-year declines.

""We're seeing effects of the economic recovery within existing accounts in the form of fewer delinquencies and foreclosures, but not a substantial amount of new activity as home sales and resulting new home financing fail to keep pace with payoffs and foreclosures,"" said Equifax Chief Economist Amy Crews Cutts.

Credit levels continued to show a decline and fell 25 percent compared to the peak reached in 2008.

Also, home equity lines of credit (HELOC) appear to be shrinking, with the number of revolving home equity loans at a five-year low, with 11.6 million outstanding as of March 2012.

HELOCs opened in January 2012 were 67 percent lower than January 2008, but 16 percent higher than the recession low in January 2009.

Of delinquencies within existing HELOCs, an overwhelming 79 percent were from loans originated from 2005 to 2007.

Headquartered in Atlanta, Equifax is a global leader in consumer and commercial information solutions, providing businesses of all sizes and consumers with information they can trust.