MEQUON, Wis.–Home equity-secured loans have plunged as a portion of overall consumer loans over the past year, although HELCs have rebounded slightly, according to new data. Mortgagebot reported that in November 2009, home equity loans made up approximately 5% of the overall loan market, down from 13.3% from one year earlier, but up slightly from the 3.2% of loan share HELCs held in April 2009.
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In a separate analysis, FirstAmerican CoreLogic reported that in November HELC originations were just $3.8-billion, their lowest point in two years, and down from $6.6 billion in October of 2009.
“Consumers are still retrenching and paying down debt, not extending debt burdens,” said Mark Fleming, chief economist at First American.
