Home Equity Loan Delinquencies Rise in Q3

Washington, DC, Jan. 8, 2010--Delinquencies on home-equity loans continued to rise in the third quarter due to rising unemployment and falling housing values, according to the American Bankers Association.

"Housing-related loans continued to show stress. Home-equity-loan delinquencies hit another record, jumping 29 basis points to 4.30% of all accounts," the ABA said.

Delinquencies on home-equity lines of credit also hit a new record, rising 20 basis points to 2.12% of all accounts.

However, consumer-loan delinquencies fell in seven categories, marking the first time since 2007 that so many loan categories experienced declines, according to the ABA.

"Delinquencies may be near their peak as job losses have slowed," Chief Economist James Chessen said.