Moody's: HEL Index Chargeoff Rate Jumps

The annualized chargeoff rate of Moody's Home Equity Index Composite rose 31.6% on a year-over-year basis in June, jumping to 1.05% from 0.80% a year earlier, according to Moody's Investors Service.The rise represents the highest rate of increase since 2001, the rating agency reported. Delinquency rates also continued their ascent in June. As a percentage of current pool balances, the 60-day-plus delinquency rate rose to 6.76%, compared with 5.86% in June 2005, while foreclosure and real-estate-owned rates rose to 2.68% and 0.97% from 2.14% and 0.72%, respectively. The findings are detailed in a new report on the Moody's U.S. Home Equity Index Composite, which tracks the aggregate performance of home equity loans backing securities rated by Moody's.