One economist said that HELOC performance remains strong this year, but subprime loans are lower in volume than first mortgages.
Read More »How HELOC May Effect Lending Moving Forward
A rebound is underway that affects consumers and lenders positively. but Experian states that even with this positive outlook, though, consumers and lenders still should proceed somewhat cautiously.
Read More »HELOC Balances at Larger Banks Continue Declining Trend
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.
Read More »With Fewer Write-Offs and Severe Delinquencies, Borrowers Are Managing Mortgage Debt Better
The severe delinquency rate on home equity installment loans fell from 2.59 percent in Q1 2014 to 1.98 percent in Q1 2015, while balances declined by 16.4 percent year-over-year in Q1 down to $136.1 billion and accounts declined by 10.6 percent down to 4.5 million for the same period.
Read More »HELOC Holders May Be In for Payment Shock When Loans Reset
Looking ahead, things don't get much better, according to Black Knight Financial Services. Beyond the next three years, Black Knight Financial Services predicts still-high payment increases as the next phase of HELOCs resets. Borrowers with HELOCs scheduled to reset in 2019 are using an average of about 40 percent of their available credit and will incur payment increases of about $200 per month based on their current rates.
Read More »Significant Amount of HELOC Balances May Be at a High Risk of Default
A recently released study by TransUnion reported that approximately $50 billion to $79 billion in outstanding Home Equity Lines of Credit (HELOC) balances reported at the end of 2013 could be a high risk to default in the next few years.
Read More »HARP-Eligible Loans Decline in 2013
The Data and Analytics Division of Black Knight Financial Services released its Mortgage Monitor Report, which looked at data as of the end of January, 2014. The report found that Home Affordable Refinance Program (HARP) eligible loans have shrunk throughout the year, noting "a general decline in the overall 'refinancible' population of both traditional and HARP-eligible borrowers with associated loan origination volumes dropping in both categories as well."
Read More »As Borrowers Emerge from Underwater, Cloud of Problem HELOCs Rises
The percentage of homeowners who owe more on their mortgages than their homes are worth has declined to less than 12 percent as of the third quarter of this year, according to Lender Processing Services' (LPS) Mortgage Monitor report. While the increasing number of homeowners rising above water is good news for the market, LPS detects some tumultuous seas ahead as a cloud of problem home equity loans forms on the horizon.
Read More »Serious Delinquencies Hit Five-Year Milestone
Mortgage delinquencies are on the decline, according to a report from Equifax. Home finance write-offs so far this year total $96.3 billion, down 22 percent from last year. The balance of mortgages in severe delinquency--those 90 or more days past due--is less than $300 million for the first time in five years, and Equifax's Amy Crews Cutts says current trends suggest we'll be at pre-recession levels of severe delinquencies by the end of 2014.
Read More »BofA Weathers Mortgage Losses, Reports $2.5B Profit
Bank of America exhibited healthy growth during the third quarter despite an expected weakening in its mortgage banking operations, according to the company's Q3 earnings report released Wednesday. BofA's third-quarter net income was $2.5 billion, a significant increase compared to $340 million reported for Q3 2012. Its consumer real estate services division, though, reported a net loss of $1 billion.
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