According to recent statistics, home equity loan delinquencies have skyrocketed to a record number.
Bloomberg reports:
“Late payments on home-equity loans rose to a record in 2008’s fourth quarter as job losses and the deepening recession put a strain on borrowers, the American Bankers Association reported. Delinquencies increased to 3.03 percent of accounts in the period from 2.63 percent in the third quarter, the Washington- based group said today in a statement.”
The massive number of HELOC delinquencies has caused lenders to tighten requirements for new borrowers and even freeze the lines of current customers. Will a turn-around be reported for the first quarter of the year?
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