The seasonally adjusted 30-day delinquency rate on home equity lines of credit held steady at 1.88% at June 30, hardly budging from the first quarter, according to new figures released by the American Bankers Association.
As for closed-end seconds, ABA found that 3.97% of these loans were 30 days or more past due, down 15 basis points from the first quarter. (HELOCs are open-ended. Closed-end loans are for a fixed amount.)
It appears delinquencies on HELOCs may have peaked at 2.12% in the third quarter of 2009. The delinquency rate for second mortgages hit a high of 4.32% in the fourth quarter of last year.
Charge-offs on seconds also fell in the second quarter, according to figures compiled by the Federal Deposit Insurance Corp.
The net charge-off rate on HELOCs fell to 2.65% in the second quarter from 3.12% in the prior quarter. Net charge-offs on the $654.5 billion of HELOCs held by FDIC-insured banks and thrifts totaled $4.4 billon in the second quarter.
On closed-end second mortgages, the net charge-off rate fell to 4.7% in the second quarter from 5.6% in 1Q. FDIC-insured depositories held $164 billion in second mortgages as of June 30 after taking $2.1 billion in charge-offs.
Meanwhile, ABA says mobile home loans are showing "increased signs of stress." Mobile home delinquencies rose 36 bps from the previous quarter to 4.1% in the second quarter -- the highest rate since October 2005.
