Black Knight Financial Services...Home Equity Data – ~6 million loan level records reported...

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Black Knight Financial Services HELOC Draw Period Expirations


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McDash Home Equity Database

Home Equity Data – ~6 million loan level records reported directly from servicers each month

– 50+ distinct data fields (origination, ARM, performance, etc.)

– Aggregated monthly; commercially available 45 days after month end

Equity Positions – Total debt figure is calculated by adding the current outstanding second

lien HELOC balance as reported by the servicer to the associated first lien amount

– Mark-to-Market property value is calculated by applying the Black Knight Home Price index to the original property valuation


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Wave of home equity originations seen during housing bubble

Over 85% of all second lien HELOCs originated in the past 10 years were prior to 2009


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Bubble era HELOCs are reaching their 10-year mark

Assumes 10-year draw periods for all active HELOCs Equity figures for 2012-2015 in table represent figures as of the beginning of each year

61% of outstanding second lien HELOCs will begin amortizing in the next 4 years; 31% of which

have < 10% equity

Year < 10% Equity2012 10.3%2013 15.4%2014 20.7%2015 32.4%2016 35.8%2017 31.6%2018 12.2%


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Average payment shock of $247/mo over the next 4 years

Assumes 10-year draw periods for all active HELOCs Payment Shock figures for 2012-2015 in table represent figures as of the beginning of each year

2016 will see highest average payment shock of $255/mo

Year Payment Shock2013 $1732014 $2172015 $2452016 $2552017 $2492018 $232


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Prepayments down for 2004 as compared to prior vintages at 10-year mark

2010 2011 2012 2013 2014


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Spike in new non-current loans seen as second lien HELOCs reach their 10-year mark

2010 2011 2012 2013 2014

New Non-Current lines of credit are lines that were current 6 months ago and are now at least 60 days past due


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Delinquencies up for 2004 vintage as compared to prior vintages at 10-year mark

2010 2011 2012 2013 2014


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23% of second lien HELOCs resetting in the next 4 years are in California

*Assumes 10-year draw periods for all active HELOCs


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Similar end of draw distribution seen in CA

Assumes 10-year draw periods for all active HELOCs Equity figures for 2012-2015 in table represent figures as of the beginning of each year

64% of outstanding second lien HELOCs will begin amortizing in

the next 4 years

CA HELOCs seeing slightly better equity positions than the national

average

Year California National2012 9.0% 10.3%2013 13.7% 15.4%2014 20.7% 20.7%2015 30.6% 32.4%2016 31.6% 35.8%2017 25.6% 31.6%2018 3.2% 12.2%

Loans with


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Average payment shock in California $87 higher than the national average over the next 4 years

Assumes 10-year draw periods for all active HELOCs Payment Shock figures for 2012-2015 in table represent actual figures as of the beginning of each year

Year California National Difference2013 $265 $173 $932014 $329 $217 $1112015 $321 $245 $772016 $345 $255 $902017 $337 $249 $892018 $329 $232 $97


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Payment shock percentages in CA similar to national average

Assumes 10-year draw periods for all active HELOCs


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Similar CPR rates during 10th year historically, CA 2004 vintage outpaced national average in 2014

2012 2013 2014


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New non-current HELOCs in CA slightly behind the national average at 10 year mark

2012 2013 2014

New Non-Current lines of credit are lines that were current 6 months ago and are now at least 60 days past due


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HELOC DQ rates in CA slightly below national average historically; shift seen in 2004 vintage

Delinquency rate for 2004 vintage in CA has surpassed the national average

2012 2013 2014

Black Knight Financial ServicesMcDash Home Equity DatabaseWave of home equity originations seen during housing bubbleBubble era HELOCs are reaching their 10-year markAverage payment shock of $247/mo over the next 4 yearsPrepayments down for 2004 as compared to prior vintages at 10-year markSpike in new non-current loans seen as second lien HELOCs reach their 10-year markDelinquencies up for 2004 vintage as compared to prior vintages at 10-year mark23% of second lien HELOCs resetting in the next 4 years are in CaliforniaSimilar end of draw distribution seen in CAAverage payment shock in California $87 higher than the national average over the next 4 yearsPayment shock percentages in CA similar to national averageSimilar CPR rates during 10th year historically, CA 2004 vintage outpaced national average in 2014New non-current HELOCs in CA slightly behind the national average at 10 year markHELOC DQ rates in CA slightly below national average historically; shift seen in 2004 vintage

Date post:	03-Feb-2021
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Black Knight Financial Services...Home Equity Data – ~6 million loan level records reported...

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