Posted To: MND NewsWire
Delinquencies on home equity lines of credit (HELOCs) have increased on an annual basis twice in the six months ended in March according to Black Knight Financial Services. These were the first such increases since June 2012 and, along with the amortization status of a large number of these loans, have occasioned the company to take a look at HELOCs in its June Mortgage Monitor. HELOCs originated in 2005 comprised about 17 percent of all active HELOCs at the beginning of 2015, the year in which these loans ended their so-called open periods. Homeowners could no longer draw down on unused portions of their open lines of credit and the loans themselves switched from interest only to fully amortizing loans. The percentage of HELOCs represented by 2015 loans has subsequently dropped to 13 percent…(read more )