3/10/10–American Banker on 2nd Liens, Home Lending Portfolio, Mortgage Insurers
An interesting article in American Banker this morning touches on the confounding question of how and why 2nd liens continue to perform as well as they have performed. The full article can be found here . "According to Lender Processing Services Inc., the 30-to-89-day delinquency rate on home equity loans held by depositories slid from a peak of 1.78% at the end of 2008 to 1.32% on Dec. 31. For first mortgages, the rate also declined over the same period but less steeply, hovering around 3%The differences are starker in the noncurrent rate, which captures loans 90 days overdue or in nonaccrual status. They've flatlined below 2% for home equity while soaring above 9% for firsts. (Of course the article fails to point out the fact that many 2nd liens are strictly written off at 150 or…(read more)
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