Industry News

Delinquency rate on home equity loans up in Q1

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The delinquency rate on home equity loans jumped 24 basis points to 2.15 percent during the first quarter, the American Bankers Association said Tuesday. Delinquencies on home equity lines of credit -- which have the lowest delinquency rate of categories tracked in the ABA's Consumer Credit Delinquency Bulletin -- were also up 3 basis points from the fourth quarter of 2006, to .6 percent. The increase in delinquencies on home equity loans helped push the average rate of delinquency on eight loan categories tracked by the bulletin up 19 basis points, to 2.42 percent -- a level not seen since 2001. Slow job growth, falling home prices and weak economic growth helped to worsen consumers' financial position overall, said ABA Chief Economist James Chessen. "There are still signs of consumer financial distress, which will continue throughout most of this year as the worst of the housing problem works its way through the economy," Chessen said in a statement. The one bright spot in the l...