Home Equity Delinquencies Jump
The American Bankers Association said Thursday that delinquencies in home equity loan products jumped during the third quarter of 2007, with home equity loan delinquencies rising 14.6 percent on a quarterly basis. Overdues on home equity lines of credit rose 7 basis points to 0.84 percent on a seasonally-adjusted basis, the highest level since 1997 -- although its important to note that the ABA only began seasonal adjustments on home equity loan products in 2002, making it difficult to compare to previous time periods. Home equity loans saw deliquencies reach 2.28 percent in the third quarter, up from 1.92 percent in the year-ago period. HE loans were last at this level of delinquency during the middle of 2005. A composite ratio, made up of delinquencies among various consumer loans including home equity products, increased 17 basis points to 2.44 percent, the ABA said. The increase came despite a drop in credit card delinquencies, which fell 21 basis points to 4.18 percent of accounts in the third quarter. â€œConsumer loans directly related to the housing market were hit the hardest,â€? said James Chessen, ABA chief economist. â€œWe anticipate delinquency rates will continue to rise on these types of loans in the fourth quarter of 2007 reflecting continued weakness in the housing sector.â€? Click here for the full data. For more information, visit http://www.aba.net.