Do you know where your bank's home equity loan portfolio stands, compared to those of your peers? Is your ratio of HELs to HELOCs in line with that of other banks? The latest ABA Home Equity Lending Survey Report offers comprehensive, detailed benchmarks that are an invaluable resource for assessing the health of your bank's home equity lending function, as well as that of the industry as a whole. Included is an overview of the market and the impact of mortgage refinances, as well as an assessment of subprime loans and trends in asset-backed mortgage securities
Conducted from August to December of 2004, the survey is designed to give bank managers peer performance data and updates that are essential to achieving a thriving home equity loan program.
Among the survey's findings:
HELOCs are in a period of very rapid growth and are replacing HELs and other forms of consumer credit. HELOCs are profitable and have low rates of delinquency and losses.
Banks with HELOCs and HELs average a 1 percent return on assets (ROA) overall, but earn 1.5 percent on their HELOCs and 1.25 percent on their HELs, which means that these two products are more profitable for banks than their average loans.
One-third of HELOC and HEL banks had formal risk-management programs or procedures.
Plus, the ABA Home Equity Lending Survey Report presents a ranking of the top 100 banks and the top 100 S&Ls in HEL and HELOC lending, ranked by outstandings as of Dec. 31, 2004. You cannot afford to be without this essential window on fees, marketing, delinquencies, risk management, and profitability, to name just a few of the areas covered in the report.
Release date: June 2005.