Home equity loan delinquencies during the fourth quarter rose from 2.59 percent to 2.61 percent, while mobile home delinquencies increased from 3.11 percent to 4.07 percent and property improvement loan delinquencies inched up from 0.94 percent to 0.98 percent. The ABA’s composite ratio for all closed-end loans in the fourth quarter increased from 1.41 percent to 1.51 percent. However, in the open-end loan category, home equity lines of credit delinquencies fell from 1.16 percent to 1.06 percent during this period.
However, the ABA is not issuing a warning on a weakening economy “Across all categories, delinquency levels have remained relatively low due to solid job growth, rising income and consumers’ continued efforts to manage their finances carefully,” said James Chessen, the trade group’s chief economist. “As the housing market continues to improve, so do home-related delinquencies. With home prices on the rise and borrowers better positioned to honor their debts, we expect that home-related delinquencies will continue their gradual downward trajectory.”