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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S Approximately 1.2 percent of residential homes (about 469,000 properties) in the United States were in some state of foreclosure in July 2015, a decline of nearly 28 percent from a year earlier, according to CoreLogic. The delinquency rate among second lien home equity lines of credit (HELOC) was 1.9 percent in July 2015, the lowest level since April 2007, and it has declined 11 percent since the start of 2015 alone, according to Black Knight Financial Services. MORE THAN HALF OF CURRENT HELOCS FACING PAYMENT SHOCK OVER THE NEXT TWO YEARS INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM Source: CoreLogic (as of June 2015) Source: CoreLogic (as of Q2 2015) STATES WITH THE HIGHEST PERCENTAGE OF MORTGAGES WITH POSITIVE EQUITY 1 Texas 97.9% 2 Alaska 97.6% 3 Hawaii 97.5% 4 Montana 97.2% 5 Colorado 96.7% 6 North Dakota 96.3% 7 Washington 96.2% 8 Utah 96.0% 9 Indiana 95.9% 10 Oregon 95.9% Metro Percentage Ranking STATES WITH THE LOWEST 12-MONTH SUM OF COMPLETED FORECLOSURES 1 South Dakota 33 2 Washington, D.C. 124 3 North Dakota 316 4 Wyoming 483 5 West Virginia 553 6 Hawaii 726 7 Alaska 728 8 Maine 772 9 Montana 832 10 Mississippi 976 Ranking State Foreclosure Home equity lines of credit (HELOCs) originated during the housing bubble years of 2005 to 2007 have either reached or will soon reach their 10-year "end of draw" period, at which point borrowers will face a payment shock that may cause delinquency rates among HELOCs to rise substantially. According to Black Knight Financial Services' July 2015 Mortgage Monitor, HELOCs originated from 2005 to 2007 make up more than half (54 percent) of the current HELOC universe. ese borrowers are facing full amortization of outstanding balances for the next two and half years, which means that approximately three million borrowers will see their monthly mortgage payment increase by an average of $250. About 550,000 to 600,000 borrowers will experience that increase within the next six months, according to Black Knight. Furthermore, despite improving overall equity positions, about 29 percent of borrowers facing end-of-draw periods and subsequent payment shocks have less than 10 percent equity in their homes, which will make refinancing problematic, according to Black Knight. "To give an idea of what this could mean, consider that new non-current rates—HELOCs that were current six months ago and are now at least 60 days delinquent—are up 44 percent year-over-year on HELOCs originated in 2005, and total delinquencies on that vintage's HELOCs are up 19 percent year-to-date," Black Knight Data & Analytics SVP Ben Graboske said. "is remains a situation that bears close watching." e credit quality of recently originated HELOCs has greatly improved. HELOCs originated in Q1 2015 had the highest weighted average credit score on record— about 40 points higher than in 2005. e improvement of credit quality for HELOCS has resulted in overall delinquency rates for HELOCs falling to their lowest level since 2007, but the delinquency rate for HELOCs originated during the housing bubble years has been much higher. Year-to-date in 2015, HELOC delinquency rates were at 11 percent, but those with a 2005 vintage had a 19 percent delinquency rate. e number of seriously delinquent HELOCs year-to-date with a 2005 vintage is estimated at between 45,000 and 50,000, according to Black Knight. Prepayment rates, which are historically a good indicator of refinance activity, for 2005 vintage HELOCs are outpacing the rates seen last year for 2004 vintage HELOCs—which suggests that borrowers who are able to refinance are taking advantage of low interest rates. Out of the number of HELOCs scheduled to reset during the first half of 2015, 23 percent have either been paid off or are no longer active, according to Black Knight. e number of outstanding 2005 vintage second-lien HELOCs has been reduced by 15 percent during the first half of 2015, Black Knight reported. PAGE 46 CHIEF ECONOMIST AUCTION.COM ASK THE ECONOMIST WITH Peter Muoio

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