Equifax: Q1 Home Finance Write-Offs Down Nearly 23%

Posted by Orb Staff on April 17, 2013 No Comments
Categories : Mortgage Servicing

13668_dollar_fat Equifax: Q1 Home Finance Write-Offs Down Nearly 23% Home finance balances written off in the first quarter totaled $43.1 billion, nearly 23% below the $55.4 billion level recorded in the first quarter of 2012, according to new data from Atlanta-based Equifax.

By loan type, year-over-year change in home finance write-off rates between the first quarters of last year and this year showed declines in home equity revolving lines of credit (down 44.1%), home equity installment loans (down 32.9%) and first mortgages (down 17.6%).

‘Overall home finance balances decreased to $8.38 trillion in March 2013 from $8.64 trillion same time a year ago,’ says Equifax Chief Economist Amy Crews Cutts. ‘The decline is due to write-offs from foreclosures, as well as from consumers paying down balances when refinancing, known as cash-in refinancing, shortening terms when they refinance their loans or making extra principle payments each month for faster amortization; some have even paid off their mortgages entirely. The share had been running 50-50 until recently when it has shifted to a 60-40 split with write-offs dominating. This shift is important as increased home purchases are finally leading to more demand for mortgage credit and may soon stop the decline in mortgage debt outstanding.’

Register here to receive our Latest Headlines email newsletter




Leave a Comment