Skip to main content

Equifax: First Mortgage Balance Rises for First Time in Six Years

NationalMortgageProfessional.com
Mar 24, 2014

Equifax announced its latest National Consumer Credit Trends Report, which shows that the total balance of first mortgages increased 2.8 percent from same time a year ago, realizing the largest year-over-year increase since September of 2008. At $7.97 trillion, the total balance of first mortgages is the highest since December 2011. Delinquent first mortgages, those 30 or more days past due, represent 5.65 percent of outstanding balances, a decrease of more than 22 percent from the same time last year. Similarly, the total balance of first mortgages 90-days past due or in foreclosure is less than $270 billion, a six year low and a decrease of nearly 27 percent from same time a year ago. ”The decline in mortgage balances from accelerated amortization and foreclosure write-offs has finally been overcome by increases in mortgage debt due to home purchase lending,” said Amy Crews Cutts, Equifax chief economist. “This trend should gain additional momentum as we head into the spring and summer home buying seasons, which increases the volume of new loans coming in, while at the same time rising home values and improving employment conditions should push down the incidence of mortgage defaults.” Other highlights from the most recent Equifax data include: Home Finance ►The total balance of home finance write-offs year-to-date in February is $17.9 billion, 41 percent lower than same time a year ago; ►The total balance of home finance write-off dollars in 2013 was $149 billion, a decrease of more than 30 percent from 2012. ►For the first time in four years, the total balance of home finance debt ($8.58 trillion), which includes first mortgage and home equity, has increased year-over-year for three consecutive months. Home Equity Revolving ►The total limit of new credit year-to-date in December 2013 is $90.5 billion, a five-year high and a year-over-year increase of 15.7 percent, the highest in seven years; ►The total number of new loans year-to-date in December 2013 is 1.05 million, a five-year high and a year-over-year increase of 20.8 percent, also a seven-year high; ►In February 2014, the total balance of home equity revolving loans is $485.3 billion, a decrease of 6.8% from same time a year ago and a five-year low. Similarly, the total number of loans outstanding in February is 10.3 million, the lowest total in 10 years. ►The total balance of severely delinquent home equity revolving loans in February 2014 is nearly $8.3 billion, a decrease of more than 16 percent from same time a year ago and the lowest since January 2008. Home Equity Installment ►The total balance of home equity installment loans is $134.2 billion, a decrease of 2.4% from same time a year ago, while the total number of loans outstanding is just over 3.9 million. ►The total balance of home equity installment loans in foreclosure is $424 million. ►The total balance of severely delinquent home equity installment loans (90 days past due or in foreclosure) is $3.54 billion.
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021