Last month we published an article identifying the lenders who were canceling or freezing HELOC lines. Now, it’s time for an update.

Lenders Freezing HELOC Lines

Countrywide (leading the way since January with over 120,000 notices sent)

Wachovia (started sending most letters earlier this week)

Washington Mutual

IndyMac Bank

Capital One (Greenponing Mortgage Unit)

Bank of America

Chase

CitiGroup

National City

Suntrust

USAA Federal Savings

It’s important to note that these lenders are not freezing all of their customer’s HELOCs. Certain customers are receiving freeze notices when the lender determines that their property value has declined. The value is generally based on the lender’s AVM (automated valuation model) and not a physical appraisal.

Some mistakenly believed that the HELOC freeze would end in January. However, borrowers are still receiving notices. Since property values are continuing to decline, it is safe to assume that the HELOC freeze will continue.

See also:

What to Do if You’re Hit By the HELOC Freeze

Tags | Heloc, heloc freeze, HELOC Lenders, lenders