The seasonally adjusted 30-day delinquency rate on home equity lines of credit jumped 20 basis points in the third quarter from the previous quarter to a new record of 2.12%, according to an American Bankers Association survey.
On closed-end second mortgages, the seasonally adjusted delinquency rate shot up 29 basis points to 4.3% in the third quarter, also a new record.
At the start of the year, 1.46% of HELOCs were 30 days or more days past due and 3.0% of closed-end second liens were 30 days or more past due.
Banks and thrifts held $667.5 billion in HELOCs as of Sept. 30, according to Federal Deposit Insurance Corp. (FDIC) Call Report data. Of that, $9 billion or 1.3% was 30-to-89 days past due. Banks charged off $5.1 billion in HELOCs in the third quarter.
FDIC-insured institutions held $187.7 billion in closed-end second liens and 2.6% or $4. 9 billion were 30-89 days past due. Charge-offs on second liens totaled $2.8 billion.