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