Don’t plan on taking out a home equity line of credit from J.P. Morgan anytime soon. According to MarketWatch, their HELOC originations dropped a whopping 77% when compared to last year: “Home equity loan origination dropped more dramatically, falling 77% on a year-to-year basis. “Declines reflect tighter underwriting standards and the overall reduction in liquidity [...] [...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]
A recent survey reports that 65% of applicants find it more difficult to take out a home equity line of credit this year. Deloitte reports: “According to those who have attempted to secure several types of credit and mortgage products over the past year, a majority found it to be more difficult. Deloitte’s survey revealed: [...] [...more]
During the housing boom, HELOC lenders regularly offered home equity lines of credit at 90% or even 95% of the borrower’s home value. As home values declined, these loans became increasingly risky for banks. If a borrower has a 95% loan-to-value HELOC and his home declines 6%, the borrower is unable to pay back the [...] [...more]
Lending standards have tightened. But, if you still qualify to take out a HELOC, you may be able to snag a super deal. Since HELOC rates are tied to the federal funds rate, you’re likely to have a very low monthly payment. Here are a few HELOC deals out there right now, as discovered by [...] [...more]
This week, Comptroller of the Currency John C. Dugan urged banks to consider tougher underwriting standards on home equity lines of credit (HELOCs). In his speech, he suggested that banks should cut back on many of the competitive HELOC allowances used by underwriters during the housing boom: “Home equity loans and lines of credit grew [...] [...more]
Now that HELOC lending standards have become tighter, prospective borrowers may want to consider working with a mortgage broker. Mortgage brokers can’t change the standards set by banks. But, they can explore a variety of lending options with you and advocate on your behalf. The Problems of Working Directly with a Lender When you go [...] [...more]
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 [...] [...more]
Fannie Mae (the largest national provider of home loan funds) recently issued new rules that will affect many HELOC customers. The Boston Globe reports: “Fannie Mae will no longer allow homeowners to refinance loans it either owns or has packaged into bonds at typical loan-to-value ratios in areas with falling home prices if they’re going [...] [...more]
During the real estate boom, lenders would regularly set HELOC caps above the home’s current value. Now, they’re reconsidering. MSNBC reports: “Lenders periodically conduct “portfolio reviews” to examine whether the assets (in this case homes) against which they have extended credit have held their value, says Richard Hagar, an appraiser at American Home Appraisals in [...] [...more]
