Home Equity Delinquency Rate Falls

Late payments on home equity loans fell in the fourth quarter of 2005, according to the American Bankers Association.However, banks reported a five basis point increase in delinquencies on home equity lines of credit, with the year-end overdue rate reaching 0.51%. Still, HELOCs had the lowest past due rate of any consumer credit category. On closed-end home equity loans, the overdue rate fell 26 basis points from the third quarter to 2.07% at the end of the fourth quarter. Mobile home loan delinquencies increased to 3.91% at the end of the fourth quarter, 60 basis points higher than in the third. The ABA also reported a marked decline in credit card delinquencies that helped push the overall consumer credit delinquency rate lower. "With job growth strong over the last year and gas prices easing by year-end, the delinquency picture has brightened considerably," ABA chief economist James Chessen said.