Home-Related Delinquencies Mostly Up in Q4 2016

Apr 06, 2017

Delinquencies on closed-end loans related to housing rose during the fourth quarter of 2016, according to the latest American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin.

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.”

About the author

Phil Hall

Link copied

Published

Apr 06, 2017

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Jan

Uncasville, CT

More from

Industry News

Garg Claims Majority In Better Fight, Board Poised To Honor Vote

Founder says he secured more than 51% of voting power to remove five directors, pending confirmation by a third-party inspector

C-Suite Strategies

Oct 01, 2026

Rocket Makes VantageScore Its Default After Testing Finds Borrower Savings

After four months of testing, Rocket will make VantageScore 4.0 its preferred model for eligible retail loans while keeping both scoring options available to brokers

Industry News

Sep 29, 2026

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026