Defaults on HELOCs

Separate mortgage data released Monday echoed CoreLogic’s findings that a rebounding housing market has helped troubled borrowers manage their first-lien mortgages. However, Lender Processing Services, a Jacksonville, Fla.-based processing-services provider for mortgages and consumer loans, warned about home-equity lines of credit, pointing to a recent uptick in delinquencies and drops in borrowers’ credit scores. According to LPS, a large share of borrowers with these home-equity lines will soon face higher payments as the loans fully amortize.

“We could be looking at significant risk to the home equity market over the coming years,” said Herb Blecher, an LPS senior vice president.

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