Allen H. Jones, a managing director of RiskSpan, a mortgage data consulting company in Washington, said the estimate of a 20 percent elevated default risk is in line with his company’s observations. He also sees loan servicers that are reaching out to borrowers getting better-than-expected results. “The outspoken nature of the O.C.C. guidance on Heloc risk served the industry well,” Mr. Jones said. “Many of our clients have proactively managed their exposure and applied lessons learned from the housing crisis."

Read the full article: Dealing With Home-Equity Resets.