Improving Loan Performance May Indicate, However, That Home Equity Loans Are Highly Unseasoned and May Mask Credit Risk
Year Quarter Past-Due HELOCs Past-due and nonaccrual draws to total draws Weighted Average Seasoning of HE Pools Months
1999 3 1.03% 17.26
4 1.02% 18.36
2000 1 1.04% 19.57
2 0.97% 20.61
3 1.11% 21.22
4 1.24% 22.41
2001 1 1.18% 23.00
2 1.11% 23.35
3 1.18% 23.47
4 1.06% 22.20
2002 1 0.88% 20.83
2 0.79% 20.42
3 0.81% 20.18
4 0.79% 19.23
2003 1 0.71% 18.67
2 0.66% 17.90
3 0.64% 17.43
4 0.60% 16.69
2004 1 0.57% 16.34
2 0.51% 15.89
Source: FDIC