Equifax: First Mortgages in Severe Delinquency Drop 22 Percent Year-Over-Year – NMP Skip to main content

Equifax: First Mortgages in Severe Delinquency Drop 22 Percent Year-Over-Year

NationalMortgageProfessional.com
Aug 29, 2013

According to Equifax’s latest National Consumer Credit Trends Report, the total balance of bank credit cards increased slightly over the year ending July 2013 (from $533.3 to $536.5 billion), realizing the first year-over-year increase in five years. For other verticals, year-over-year changes in balances include: ►First mortgage: Decreased 0.9 percent (from $7.79 trillion to $7.72 trillion); ►Home equity installment: Decreased 4.1 percent (from $142.3 billion to $136.5); ►Home equity revolving: Decreased 8.9 percent (from $553.2 billion to $504.1 billion); ►Student loan: Increased 11.3 percent (from $794.6 billion to $884.2 billion); and ►Auto: Increased 10.9 percent (from $745.3 billion to 826.8 billion); “Only two major consumer credit segments are currently growing: Auto financing and student loans,” said Equifax Chief Economist Amy Crews Cutts. “In all other segments, consumers are reducing their debt burdens, either negatively, through foreclosures and bankruptcies or positively, through payoffs—payoffs are dominating in most cases today. We expect mortgage balances to begin rising again over the next several months as new home purchase loans overtake foreclosures and payoffs.” Other highlights from the most recent data include: Home Finance ►First mortgages in severe delinquency (30-days past due) represent 6.24 percent of outstanding balances, a decrease of 22 percent from the same time last year; ►The total balance of home finance write-offs year-to-date in July 2013 is $96.3 billion, a decrease of more than 22 percent from same time a year ago and the lowest since 2007; ►Similarly, the total balance of first mortgages 90-days past due or in foreclosure is less than $310 billion, a five-year low and a decrease of more than 25 percent from same time a year ago; and ►By loan type, severely delinquent balances (90-days past due or in foreclosure) for home equity revolving ($8.3 billion) and home equity installment ($4.4 billion) in July 2013 are five-year lows. Bankcard ►Serious delinquencies represent 1.86 percent of outstanding balances in July 2013, a decrease of more than 11 percent year-over-year; ►The total of new credit opened between January-May 2013 is the highest since 2008 and an increase of more than six percent from same time a year ago ($72.9 billion to $77.7 billion); ►From January-May 2013, the total number of new loans also increased more than six percent from same time a year ago, from 15.6 million to 16.6 million; and ►Both new loans and new credit year-to-date in May 2013 are five-year highs. Student Loan ►The total number of student loans originated January-May 2013 is 4.2 million, a decrease of 9.3% from same time a year ago; ►In that same time, the total balance of new credit is $24.3 billion, an increase of nearly four percent from same time a year ago; ►More than 60 percent of new student loans in May 2013 were distributed to borrowers between the ages of 24 and 39, a modest decrease from the same period last year; and ►The total amount of write-offs year to date in July 2013 is $11.6 billion, an eight-year high and an increase of more than 58 percent from same time a year ago.
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