Earlier today, Market Watch reported that six banks may lose a whopping $50 billion on home equity loans by the end of June. Declining real estate markets mean many HELOC / home equity loan customers now owe more than they can generate via selling their properties.

Which banks are hit hardest?

“Analysts slashed estimates for Merrill Lynch, Lehman Bros, National City Corporation, KeyCorp, and Suntrust Bank accordingly.”

Although many lenders are still offering HELOC loans, the lending standards and ratios have definitely been getting stricter.

See Also:

HELOC Lenders Reporting Losses

How to Qualify for a HELOC

Tags | Heloc, lenders, mortgage crisis