trending Market Intelligence /marketintelligence/en/news-insights/trending/FwANsABrsGE43ONI6ggYPA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Declining interest rates no remedy for falling home equity loans in Q3'19

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments


Declining interest rates no remedy for falling home equity loans in Q3'19

U.S. banks and thrifts reported $392.76 billion in home equity lines of credit, or HELOCs, and junior liens at the end of September, down 2.4% from the second quarter and 8.1% from the year-ago quarter.

However, credit quality continued to improve. The share of home equity lines of credit that were delinquent or in nonaccrual status shrunk to 2.4% as of Sept. 30, from 2.6% at the end of June and 3.0% at the end of September 2018. The delinquency rate for closed-end junior liens also fell to 3.0% as of Sept. 30 from 3.3% in the previous quarter and 3.8% a year earlier.

SNL Image

HELOCs peaked at $894.27 billion in the fourth quarter of 2008 and have been declining ever since.

For the third time this year, the Federal Reserve made a 25-basis-point rate cut on Oct. 30, following rate reductions in September and July. U.S. banks and thrifts also lowered interest rates on home equity products, but that still seems to have had little effect on demand for loans. The industry average HELOC rate was 5.43% for the week ended Dec. 6, down 44 basis points from six months earlier, and 18 basis points from the previous year.

SNL Image

With $41.99 billion in home equity loans and lines of credit as of Sept. 30, Bank of America Corp. led the industry, even as its home equity loan portfolio fell $2.41 billion quarter over quarter and $9.06 billion year over year. In the company's third-quarter Form 10-Q, Bank of America attributed the decline in 2019 to paydowns and $1.9 billion in loan sales, which outpaced new originations. BofA's home equity delinquency ratio dropped 147 basis points quarter over quarter to 2.00% as of Sept. 30, easily the largest improvement among the top 20 lenders.

SNL Image