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Home Equity Problems on the Rise Even as Loan Demand Picks Up Steam.(Brief Article)(Statistical Data Included)

Mortgage Servicing News

| May 01, 2001 | COPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Home equity lending at national banks grew by 22% last year but delinquencies and charge-offs also edged up, according to the Comptroller of the Currency.

Fourth-quarter Call Report data on national banks shows home equity loans held on the books grew from $67.3 billion at year-end 1999 to $82.7 billion as of December 31, 2000.

"If there is a market that is active it is the home equity market," said deputy comptroller Nancy Wentzler.

At a press briefing, the deputy comptroller said she expects to see a "spike" in home equity lending as consumers refinance their mortgages, pay off their home equity lines of credit and get a new HEL at a lower interest rate.

Over the past calendar year, HEL delinquencies ...

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Source: HighBeam Research, Home Equity Problems on the Rise Even as Loan Demand Picks Up...

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