from Bloomberg:
“Late payments on home-equity loans rose to a record in the first quarter as 18 straight months of job losses and a slumping economy left more borrowers unable to pay their debts, the American Bankers Association reported.
“Delinquencies on home-equity loans climbed to 3.52% of all accounts from 3.03% in the fourth quarter, and late payments on home-equity lines of credit climbed to a record 1.89%, the group reported today. An index of eight types of loans rose for a fourth straight quarter, to 3.23% from 3.22% in October through December, the group said.
“‘The number one driver of delinquencies is job losses, which we’ve seen build and build,’ James Chessen, the group’s chief economist, said in a telephone interview. ‘Delinquencies won’t come down without a dramatic improvement in the economy and businesses will have to start hiring again.’”
