Black Knight: HELOC Default Wave Building Momentum

Recent research from Black Knight Financial Services shows that the delinquency rate on home equity lines of credit (HELOCs) has increased on a year-over-year basis in two of the past six months – the first such annual increases since June 2012.

The increases are being driven almost entirely by an 87% spike in delinquencies among 2005 vintage HELOCs over the past 12 months, which ended their draw periods and began amortizing in 2015.

The 2006 vintage – which began amortizing this year – accounts for approximately 17% of active HELOCs, while the 2007 vintage represents another 18%, suggesting that the trend will likely continue over the next two years as large volumes of draw expirations take place.

For more, check out the firm’s most recent Mortgage Monitor report.


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