Home Equity Overdues Increase

The delinquency rate on both closed-end home equity loans and home equity lines of credit increased in the first quarter of this year, according to the American Bankers Association.The delinquency rate on closed home equity loans held by banks rose from 2.37% to 2.43% in the fourth quarter. The HELOC delinquency rate rose from 0.33% to 0.40%, according to the ABA. The rise in home equity overdues was in contrast to improvement in the manufactured housing and credit card sectors. Credit card delinquencies, at 4.03% in the first quarter, are now at their lowest level in three years, ABA chief economist James Chessen pointed out. The mobile home delinquency rate improved from 5.03% to 4.46% in the fourth quarter of 2004. The ABA can be found online at http://www.aba.com.