Florida’s new Senate President is speaking out against banks that hoard federal bailout money while simultaneously reducing customer’s HELOC lines. A recent release from his office explains: “…Mike Haridopolos today called for hearings in Tallassee to investigate claims that after banks received hundreds of billions in federal bailout money they squeezed consumers and fraudulently or [...] [...more]
Chase Manhattan Bank is currently facing a class action suit after freezing a few too many HELOC lines. The lead plantiff, Mary Yakas, filed the suit after her HELOC was frozen in late 2008 based on Chase’s Automated Valuation Model. Courthouse News Service reports: “Yakas filed a class action, alleging breach of contract and unjust [...] [...more]
In late 2008 and early 2009, taking out a HELOC loan was very difficult. Burned by defaults and falling home prices, lenders were exercising extreme caution when it came to underwriting decisions. But, 2010 may be the year that frozen HELOCs begin to thaw. PBS’ Nightly Business Report explains: “As housing prices and the economy [...] [...more]
A new website is encouraging HELOC borrowers and other financial customers to “break up” with their banks. Instead, they recommend that people choose local banks and credit unions for more personalized, reasonable service. Is February the perfect time to cut ties with big banks and look for a better match? The Consumerist reports: “You deserve [...] [...more]
Here’s a disturbing trend: some HELOC lenders are refusing to let borrowers refinance their original home loans unless the borrowers go through their company. When a homeowner applies to refinance a property, he must first get permission from the second lien holder (i.e. the HELOC lender). In the past permission was taken for granted. But, [...] [...more]
Suffolk County Credit Union (NY) will soon offer residents a new type of HELOC, available for the purpose of making home improvements following universal design guidelines. These lines are intended to make homes a safer place for current and future residents, and include allowance for improvements such as installing safety valves to keep burning-hot water [...] [...more]
A new program is being advertised to help lenders detect potential fraud in home equity lines of credit / loans. A press release for the FraudMark software claims that it can identify up to 60% of fraudulent loans by reviewing 10% of the total applications. “BasePoint Analytics(TM), a leading provider of scientific fraud and risk [...] [...more]
National City, a major HELOC lender, is now on a form of probation with federal banking regulators. Reuters reports: “The banking subsidiary of National City Corp has signed a confidential memorandum of understanding with U.S. regulators, promising to address its rising amount of bad loans, a source familiar with the matter said on Monday. The [...] [...more]
A new report from J.D. Power and Associates ranks home equity lenders according to the results of a customer satisfaction survey. As I reported earlier this week, overall customer satisfaction has improved since last year. However, not all HELOC lenders faired equally. Here are the results, on a scale of one to one-thousand: Bank of [...] [...more]
For months, HELOC borrowers have been complaining about frozen and reduced home equity lines. Now, a concerned congressman is asking lenders some tough questions. Representative Dennis Kucinich called the HELOC freezes “very disturbing.” “People have had their home equity lines suspended whether or not their credit is good or not, and whether they have sufficient [...] [...more]
