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Special Reports
Home Equity Lending
Analyst Says Housing Downturn Started
The dollar amount of home-equity loans on the balance sheet of KeyCorp
here grew slightly from the end of 2005 to June 30, 2006, but was down 3% from the year prior, the company's second-quarter
earnings release said.
There are $13.51 billion of home-equity loans on KeyCorp's balance sheet as of
June 30, 2006, compared with $13.43 billion six months prior and $13.93 billion one year prior.
Residential mortgage loans on the balance sheet total $1.42 billion, down from
$1.47 billion on June 30, 2006, while commercial real estate loans (including construction loans) total $15.76
billion, up from $14.74 billion one year ago.
The company classifies its home-equity production through two channels, the regional
banking segment of its community banking line of business and National Home Equity, for loans originated outside
of its retail branch system, which is part of the national banking line of business.
Home-equity loans originated in the community banking line of business had an
average balance during the quarter of $10.11 billion, an average loan-to-value ratio of 70% and 60% were in first-lien
position.
Loans originated through National Home Equity had an average balance during the
quarter of $3.33 billion, an average LTV of 70% and 61% were in first-lien position.
Second-quarter net income at KeyCorp was $308 million, or $0.75 per share, up
from $291 million, or $0.70 per share, for the year prior.
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