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HE Delinquency Rates Mixed.

Mortgage Servicing News

| March 01, 2007 | COPYRIGHT 2007 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

WASHINGTON -- The delinquency rate on home-equity loans declined in the third quarter, while the overdue rate on home-equity lines of credit increased slightly, according to the American Bankers Association.

The ABA survey found that 1.79% of home-equity loans at banks were delinquent in the third quarter of 2006, down 10 basis points from the second quarter. At the same time, the overdue rate on home-equity lines of credit increased by five basis points to 0.57% in the third quarter.

HELOCs continued to have the lowest delinquency rate of any consumer credit category tracked in the ABA Consumer Credit Delinquency Bulletin.

Overall, the ABA found that late payments for most types of consumer loans rose in the third quarter of last year, with the credit card delinquency rate rising to 4.57% from 4.41% in the second quarter.

The ABA's composite ratio shows that late payments in eight types of closed-end installment loans increased by 16 basis ...

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Source: HighBeam Research, HE Delinquency Rates Mixed.

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