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Home finance delinquencies plummet 37%: Equifax
ATLANTA (7/3/14)--The total balance of home finance delinquencies stands at $43.5 billion--a whopping 37% drop from the same period last year and a seven-year low, according to the latest Equifax National Consumer Credit Trends Report.
 
The home finance category includes first mortgage and home equity lines of credit.
 
"Households continue to improve their financial situation," said Dennis Carlson, Equifax deputy chief economist. "Delinquencies for nearly every credit sector are at the lowest point since prior to the Great Recession, with home finance leading the charge."
 
Year-over-year changes in home financing balances that are 30 or more days past due, measured as a percentage of outstanding balances, include:
  • First mortgages dropped 29% to 4.6% from 6.4%;
  • Home equity installment balances decreased 27% to 3.9% from 5.2%; and
  • Home equity revolving credit declined 10% to 2.4% from 2.7%.
Equifax's report also found the total balance of first mortgages 90 or more days past due or in foreclosure is less than $230 billion--a six-year low at a drop of 30% from same time a year ago.
 
Of the severely delinquent home equity revolving credit balances, nearly 70% were originated in 2005 to 2007.
 
Bank-issued credit cards reached a six-year high with 11.3 million new cards issued year-to-date, a 17.2% increase from the same time a year ago. Total new credit originated in that same period is $57.1 billion--also a six-year high and a year-over-year increase of 24.4%.
 
New auto loans increased 5.6% from a year ago, resulting in an eight-year high of six million. With a 7.3% increase from the same period last year, the total balance of new loans is $120 billion.
 
Credit unions are seeing similar results with credit union loan portfolios increasing 1.2% in May--the fastest monthly increase in loan balances in nearly nine years, according to the Credit Union National Association's monthly survey of credit unions. (See related story: CU loan growth fastest since 2005, reveals MCUE survey.)


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