The seasonally adjusted 30-day delinquency rate on home equity lines of credit held steady at 1.88% at June 30, hardly budging from the first quarter, according to new figures released by the American Bankers Association Tuesday.
As for closed-end second mortgages, the ABA found that 3.97% were 30 days or more past due, down 15 basis points from the first quarter. (HELOCs are open-ended. Closed-end loans are for a fixed amount.)
It appears delinquencies on HELOCs may have peaked at 2.12% in the third quarter of 2009. The delinquency rate for second mortgages hit a high of 4.32% in the fourth quarter of last year.
Chargeoffs on seconds also fell in the second quarter, according to figures compiled by the Federal Deposit Insurance Corp. The net chargeoff rate on HELOCs fell to 2.65% in the second quarter from 3.12% in the prior quarter. Net chargeoffs on the $654.5 billion of HELOCs held by FDIC-insured banks and thrifts totaled $4.4 billon in the second quarter. On closed-end second mortgages, the net chargeoff rate fell to 4.7% in the second quarter from 5.6% in the previous quarter. FDIC-insured depositories held $164 billion in second mortgages at June 30 after taking $2.1 billion in chargeoffs. Meanwhile, mobile home delinquencies rose 36 basis points from the first quarter to 4.1% — the highest rate since October 2005.
