Bank of America is now predicting even greater losses on HELOC investments than initially expected. The Los Angeles Times reports:

“Bank of America Corp. warned Tuesday that its losses on home-equity loans would be worse than it predicted just three weeks ago, adding to evidence that more consumers are falling behind on debts…

At an investor conference in New York, Liam McGee, Bank of America’s president of global consumer and small-business banking, said customers were feeling “significant economic pressure” as deflating home prices left little equity for consumers to borrow against.

He predicted that losses on the bank’s home-equity loans would top the 2%-to-2.5% range projected last month.”

Although many of their own customers are defaulting on their HELOCs, Bank of America is still going through with their acquisition of Countrywide.

See Also:

Is the HELOC in Decline?

Which Lenders are Freezing HELOC Lines?

Tags | Bank of America, Heloc, heloc freeze, HELOC Lenders