If your home equity line of credit has been frozen illegally, you may be able to appeal the decision. According to a recent Market Watch article, there are several ways to go about complaining. Here’s my summary of the options with additional links and phone numbers, which will hopefully be of use to a few [...] [...more]
Over the past couple months, I’ve posted quite a bit about Regulation Z and home equity lender’s responsibilities. HELOC lenders can freeze clients’ credit lines. But, they cannot do so without proper legal cause. The Washington Post recently reports: “This summer, both the Federal Deposit Insurance Corp. and the Office of Thrift Supervision issued guidance [...] [...more]
Last week, I posted about the letter from the Office of Thrift Supervision warning HELOC lenders to follow government regulations. Hopefully, this instruction will encourage banks to avoid freezing individual home equity lines of credit without considering a borrower’s unique circumstance (for example, a home with a high value in an area that is generally [...] [...more]
Thousands of home equity line of credit (HELOC) customers have received notice that their accounts have been frozen. Many are still wondering if it is legal for banks to freeze HELOCs. The short answer: Yes. Banks may freeze home equity lines. However, they can only do so under specific circumstances. The Oregoneon reports: “In general, [...] [...more]
If you’re an IndyMac customer, your home equity line of credit is now inaccessible. After taking over the struggling bank, the government has frozen all customer HELOCs. The FDIC says that home equity lines will be reviewed on a case-by-case basis. But, no information about the review process is currently available. It is possible that [...] [...more]
Today, IndyMac Bank was seized by the federal government after cash reserves fell too low and the bank was no longer able to operate. The fall of IndyMac, a major HELOC lender, is reported to be the second largest bank failure in the history of the U.S. Consumer Affairs reports: “IndyMac was founded in 1985 [...] [...more]
Finally, some good news for HELOC borrowers. Recently, the FDIC recently sent a letter warning lenders to follow proper procedure when freezing home equity lines of credit. Here are a few of the most notable points: - According to regulation, HELOC lenders may only reduce a borrower’s line of credit under certain circumstances. - Lenders [...] [...more]
