According to new reports, a whopping 40% of banks recently reduced home equity lines of credit.

The Associated Press explains:

“Many banks have made it harder for borrowers to obtain all kinds of loans over the last three months despite a $700 billion federal bailout program and a flurry of other bold moves to stem the worst financial crisis to hit the country since the 1930s…

For consumers, about 40 percent of banks reduced the size of existing home equity lines of credit, and roughly 35 percent trimmed credit card account limits.”

Those figures are huge. But, they may not come as a surprise to the thousands of borrowers who received line reduction or cancellation notices in their mailbox during the past year.

See Also:

Are Lenders Freezing Home Equity Lines Illegally?

Which Banks Are Freezing HELOCs?

HELOC Freezes Continue

Tags | Heloc, heloc crisis, heloc freeze, home equity line of credit