Are banks and credit unions closing HELOCs?
This was selected as Best Answer Back in October of 2008 Chase Home Equity froze my own line of credit. They assured me it had nothing to do with my payment history (which is perfect) but with real estate values in my area (suburb of St. Louis). A number of my clients have reported similar situations. I suspect that although they may be concerned with values, they are more concerned about the rate at which they are lending money. My line of credit features a rate of Prime -.5 (current rate 3.00%). I really think they are looking for way not to lend money at such low rates. I think they are using property values as an excuse. National City was reportedly paying borrowers $500 to close their unused equity lines. Most of these home equity products which the national players had previously offered did not have a floor rate. Even our small, home town players had a floor rate to their HELOC products. I haven’t seen these local players shut down their lines. It is pretty tough to operate prof
Related Questions
- If bad loans have been a major cause of problems at banks and credit unions, how are problem loans affecting Bank of Utah?
- How do credit unions and banks in the MoneyAisle network handle joint applications or no-credit applications?
- Why are some banks and credit unions struggling in Utah and around the nation?
