Home Equity line of Credit TermsHome-equity credit line the credit terms
It'?s Fitch: U.S. home equity credit quality is likely to deteriorate in 2014.
CHICAGO, 29 April (Fitch) US banking institutions with large home equity accounts will face rising credit risks next year as 10-year interest rate drawing cycles for many home equity line-of-borrowers (HELOCs) come to an end, Fitch Ratings said. In our opinion, the amount of information provided by bankers on the home equity provisions for payments is fundamentally insufficient.
Those with relatively large equity home portfolio stocks were only given by a few handfuls of valued bankers in the last 10-K submissions. As a rule, after 10 years, repayments are made to repay the terms and conditions of the credit line to the borrower when it becomes due or is converted into a repayment facility that requires both capital and interest to be paid.
The granting of home ownership credit increased sharply in 2004, as quickly increasing house prices resulted in a significant loosening of credit terms. HELOC debt in 2004 alone increased by 42%. As house values in most parts of the economy are below 2004 level, funding possibilities for these borrower are restricted. Own home credit loss has improved since peaking at the end of 2009, but net occupancy rates are still high.
You can find a full overview of these topics and the possible credit impact on large US banks in the U.S. Banks -- Home Equity ReSet Risksitting the ReSet Button in 2014 feature at www.fitchratings.com. Yulie Solar Directrice principale Institutions financières +1-312-368-5472 Bill Warlick Directeur principal Fitch Wire +1-312-368-3141 Fitch, Inc.
Specifically, the above paper initially featured on Fitch Wire's credit comments page. They are all based on the opinion of Fitch Rating. Usable Criterion and Related Research US Banking -- Home Equity Reset Risks pressing the reset button in 2014, here all matching credit scores are the object of certain restrictions and expressions.