Yesterday, the Office of Thrift Supervision (a part of the federal government) urged banks to follow the proper regulations when freezing home equity lines of credit. They explain: “Declining home prices in parts of the country are prompting some institutions to curtail, suspend, or terminate customers’ home equity line of credit. Today’s guidance emphasizes that [...] [...more]
High gas prices and a struggling economy aren’t the only reasons for declining car sales. Many would-be buyers aren’t purchasing new cars because they can’t withdraw the cash from their their home equity lines of credit. Detroit Free Press reports: “The home equity crunch hurts consumers and consumer-driven companies, including Detroit’s automakers. Art Spinella, president [...] [...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]
Just a few years ago, borrowers commonly withdrew money from their home equity lines of credit to pay for costly home remodeling projects. Since home values were going up so quickly, many assumed that the granite countertop and spa bathtub would pay for themselves with an increase in equity. Looks like those days are long [...] [...more]
Dozens of major banks have frozen home equity lines of credit. Due to the large number of frozen HELOCs, some financial advisers are recommending that homeowners tap their equity before it becomes too late. Not everyone agrees, however. Some more conservative advisers suggest that homeowners wait it out and avoid taking out money prematurely. Conde [...] [...more]
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 [...] [...more]
Borrowers planning on using the government housing bailout need to be aware of some restrictions placed on home equity lines of credit (HELOCs). CNN Money explains: “Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not [...] [...more]
This week, the federal government made some important changes to Truth in Lending laws. Most notably, they created stricter regulations on high cost home equity loans. Housing Wire reports: “For loans defined as high-cost, the revamped TILA regulations will ban stated income and related lending practices, as well as forcing lenders to assess repayment ability [...] [...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]
Wells Fargo has seen some improved earnings this quarter. But, the lender continues to face major losses from home equity line of credit customers. Market Watch reports: “Within Wells Fargo’s $84 billion home equity portfolio, 2.11% of loans had two or more payments that were late at the end of June. That’s up from 1.86% [...] [...more]
