Here’s  some unexpected good news on the home equity front: e-Trade’s troubling home equity loan portfolio actually saw some improvements in the first couple months of 2009.

Reuters explains:

“Delinquent home equity loans — which represent E*Trade’s greatest exposure to loan losses — totaled $753 million in February, up 1 percent from the end of last year. However, the early-stage delinquencies were down 16 percent over the last two months.

“(E)arly stage delinquencies are showing signs of stabilization, particularly in home equity where they’ve declined year-to-date,” Fox-Pitt Kelton analyst David Trone said in a research note.”

Although the overall delinquencies HELOC loans and other equity lending products has increased, it looks like a growing number of defaulting borrowers have actually been able to catch up with their mortgages.

Is this the sign of a home equity turn around? Or at least the initial stages of a recovery?

See Also:

HELOC Essentials

Answers to Common  HELOC Questions

Tags | e-trade, Heloc, home equity line of credit, mortgage crisis