ATLANTA, April 16, 2013 (GLOBE NEWSWIRE) -- According to the Equifax (NYSE:EFX) March National Consumer Credit Trends Report, home finance balances written off in the first quarter of 2013 ($43.1 billion) decreased nearly 23% from Q1 2012 ($55.4 billion), reflecting a five-year low. Write-offs, also known as severe derogatories, include loans that completed the foreclosure process and transitioned to real-estate owned (REO) by banks, entered bankruptcy, or were otherwise charged off by the lender.
By loan type, year-over-year change in home finance write-off rates from March 2012-2013:
- Home equity revolving: declined 44.1%.
- Home equity installment: declined 32.9%.
- First mortgage: declined 17.6%.
By loan type, year-over-year change in home finance severely delinquent balances from March 2012-2013:
- Home equity revolving: declined more than 29% ($13.6 billion to $9.7 billion).
- Home equity installment: declined nearly 26% ($6.6 billion to $4.9 billion).
- First mortgage: declined nearly 25% ($477 billion to $355 billion).
- The total balance of severely delinquent mortgages in March 2013 is $350 billion, a 51% decrease from its peak in March 2010 ($714 billion). Severely delinquent status includes balances 90 days past due or in foreclosure.
- More than 65% of severely delinquent balances among first mortgages are sourced from originations from 2005-2007.
- Transition rates for balances moving from current status to 30 days-past-due, 30 to 60 days-past-due and 60 to 90 days-past-due are all at new lows for the 5-year look-back period.
- Transition rates for balances moving from in-foreclosure to REO status, on a 6-month moving-average basis, are near the 5-year period peak, and are currently running at 12 percent per month.
- Of severely delinquent balances, 73% are tied to lines of credit opened from 2005-2007. Severely delinquent status includes home equity loans with balances 90-days past due or in foreclosure.
- Total balances declined 9.3% from March 2012-2013 ($569.1 billion to $516.4 billion)
- In that same time, total loans outstanding fell from more than 11.5 million to less than 10.9 million.
- New credit originated in January 2013 totaled $6.2 billion, realizing a 20% increase year-over-year ($5.1 billion in January 2012), and the strongest start to a calendar year since 2009.
- Total balances declined nearly 8% from March 2012-2013 ($148.1 billion to $136.6 billion).
- Balances in foreclosure declined more than 25% in that same time, from $595 billion to $445 billion.
- From March 2012-2013, total existing loans fell from more than 4.5 million to 4.2 million.