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Equifax: Driven by Consumer Demand, HELOC Originations Increase 21.5% Year-Over-YearATLANTA, March 30, 2015 /PRNewswire/ -- According to the latest Equifax (NYSE: EFX) National Consumer Credit Trends Report, U.S. consumer appetite for home equity lines of credit (HELOCs) is increasing. In 2014, more than $120 billion worth of HELOCs were originated, a year-over-year increase of 21.5%. Additionally, more than 1.2 million new HELOCs were opened in 2014, a 15.8% increase over 2013. Both totals represent six-year highs for HELOC originations. "Home equity lines of credit, or HELOCs, are attracting more borrowers now that many borrowers once again have sizeable equity in their homes – nationally home values have increased about 26% on average since January 2011," said Amy Crews Cutts, Chief Economist at Equifax. "Many homeowners with a low-rate first mortgage will be reluctant to refinance that mortgage into a higher rate and rules for cash-out refinance are onerous relative to home equity loans. Over the next several years, HELOCs should continue to attract substantial consumer interest as a way to maintain low rates on primary mortgages while also gaining access to accumulated home equity for home improvements, tuition or other important uses." Meanwhile, mortgage industry write-offs continue decreasing. From February 2014-2015 the following declines in write-offs occurred:
Total mortgage balances and accounts outstanding are also decreasing. Respectively, as of February:
Leveraging data from the Equifax U.S. Consumer Credit database of more than 210 million consumers, the National Consumer Credit Trends Report reveals population-level debt and lending insights, including originations, balances, number of loans, delinquencies and more. About Equifax Headquartered in Atlanta, Equifax operates or has investments in 19 countries and is a member of Standard & Poor's (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. In 2013, Equifax was named a Bloomberg BusinessWeek Top 50 company, was #3 in Fortune's Most Admired list in its category, and was named to InfoWeek 500 as well as the FinTech 100. For more information, please visit: www.equifax.com. Logo - http://photos.prnewswire.com/prnh/20060224/CLF037LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/equifax-driven-by-consumer-demand-heloc-originations-increase-215-year-over-year-300057637.html SOURCE Equifax Inc. |