Delinquencies on home equity lines of credit rose a scant 2 basis points in the third quarter to 1.93%, according to new figures compiled by the American Bankers Association.
Still, ABA’s survey found that the 30-day plus delinquency rate on HELOCs has been rising for three quarters and is now up 19 bps since the third quarter of 2010.
Meanwhile, the delinquency rate on closed-end second mortgages fell 26 bps in 3Q to 4.12%.ABA chief economist James Chessen said the delinquency rates in housing-related loans are showing signs of stabilizing.
“The housing market is still ill, but signs of a turning point are beginning to appear,” Chessen said.
Banks and thrifts held $608.3 billion in HELOCs as of September 30, down 6% from a year ago, according to the Federal Deposit Insurance Corp.
Net charge offs in the third quarter totaled $3.1 billion, down 24% from a year ago.
FDIC figures also show that depository institutions held $127.2 billion in second mortgages at of September 30, down 18% from a year ago.
Net charge-offs totaled $1.2 billion, down 33% from the third quarter of 2010.