Homeowners with equity in their homes are turning more and more to the home-equity line of credit (HELOC) market to create opportunities for home improvements and other major expenditures. There were nearly 105,100 HELOC loans originated in November 2015--a 5 percent increase over November 2014. Subprime originations accelerated versus the same month last year, rising 9.2 percent in the number of loans taken out, but remained a small share of total HELOCs originated at 1.46 percent.
HELOC delinquency rates continue to decline year-over-year but have remained fairly steady since September 2015. The rate of serious delinquency as a percentage of number of loans fell 9 basis points from January 2015 to 0.7 percent and fell 15 basis points as a percentage of outstanding HELOC balances to 1.34 percent.
Source: Equifax Inc., Atlanta. Equifax is a global leader in consumer, commercial and workforce information solutions that provide businesses of all sizes...