Thousands of Morgan Stanley HELOC customers received notice that their lines had been reduced  or frozen this week, according to sources on the inside.

Bloomburg.com explains:

“Most of the clients had properties that have lost value, according to the person, who declined to be identified because the information isn’t public. The New York-based investment bank will review home-equity lines of credit, or HELOCs, monthly from now on, the person said yesterday.”

This is just one more name to add to the list of lenders freezing HELOCs this year.

See Also:

FDIC Warns Lenders About Freezing HELOCs

Tags | Heloc, heloc freeze, home equity line of credit, Morgan Stanley