Borrowers are managing their mortgage debt better. Substantial declines in write-offs and severe delinquency rates have taken place according to Equifax‘s Q1 2015 National Consumer Credit Trends Report released earlier this week.
The total balance of write-offs for first mortgages and home equity lines and loans (excluding those in bankruptcy) for Q1 2015 was $12.34 billion, a year-over-year decline of 32.6 percent. Likewise, the percentage of loans severely delinquent (90 or more days overdue or in bankruptcy or foreclosure) on first mortgages declined year-over-year from 3.27 percent in Q1 2014 to 2.35 percent in Q1 2015.
The severe delinquency rate on home equity installment loans fell from 2.59 percent in Q1 2014 to 1.98 percent in Q1 2015, while balances declined by 16.4 percent year-over-year in Q1 down to $136.1 billion and accounts declined by 10.6 percent down to 4.5 million for the same period.
Meanwhile, home equity revolving lines of credit reported a year-over-year severe delinquency rate decline down to 1.47 percent in Q1 2015 (from 1.71 percent a year earlier. Balances on home equity revolving lines of credit reported a year-over-year decrease of 3.1 percent (down to $509.8 billion) and accounts declined by 4.3 percent (down to 11.4 million) from Q1 2014 to Q1 2015.