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According to some, former Federal Reserve Chairman Alan Greenspan may have foreseen the current housing crisis - including the current issues with home equity lines of credit. Bloomburg reports: “For homeowners, froth came in the form of home equity. As it was seen as easy “money on the house,” this bubble-inflated bonanza was mostly cashed out. Now [...] [...more]
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According to a Federal Reserve report released earlier today, most HELOC lenders have tightened their standards for new borrowers and / or changed terms for existing borrowers. A vast majority of lenders have made it more difficult for borrowers to qualify for HELOCs during the past three months: “About 70 percent of domestic respondents—a somewhat higher fraction [...] [...more]
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Earlier today the Federal Reserve cut the federal funds rate a quarter of a point, from 2.25 to 2. The prime rate, used to determine the majority of HELOC interest rates, generally mimics the federal funds rate. So, HELOC customers may see a slight interest reduction in their future statements. Some analysts speculate that this latest [...] [...more]
