Here is a super article regarding home equity line of credits issued by lending institutions, specifically Savings and Loans.  These lending institutions are arbitrarily decreasing and some times closing home equity lines of credit for you and your customers!  Because of complaints, the OTS has issued a regulatory bulletin indicating when it is appropriate to do this.  Based on the guidelines that I read, a great many of the decreased or closed lines are being done so illegally.  If any of your clients have had this happen to them, please contact bank executive management to reverse their decision. 

 To have a bank illegally take away access to your customers money is a disgrace.  If a customer qualified for a home equity mortgage line of credit, paid for the refinance, and signed the legal mortgage lending documents, they shouldn't have a banker arbitrarily take away this product.

 See the following:

 S&Ls given warning about freezing credit

The Office of Thrift Supervision warns against improperly lowering credit limits or altering rules for home-equity loans.

 
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2 Comments on Attention all real estate agents that have clients with LOC

AUG
28
2008
200,239 Points 1 Featured Post Outside Blog

We just made it through the application process for a LOC with our credit union. You really need to read everything when applying as well as there were some problems that needed correction.  Too many just sign.

2:23pm • #1
264,988 Points 59 Featured Posts Outside Blog

Greg - These seem to be becoming more and more of a rarity.  Heck, I don't know of anyone doing a 80/15 loan with 5% down on a purchase right now.  HELOC's and HEL are living with the tumbleweeds in a barren desert at this point.  That too, will alter itself eventually.

6:36pm • #2

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Greg Adelman

Saint Croix Falls, WI

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Midwest Home Center

Office Phone: (715) 483-0012

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