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Finance & Stock Groups Forum Index » Financial Planning » credit crunch
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| Ashley |
 Posted: Mon Aug 13, 2007 3:35 pm |
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With all that is going on in the credit markets, does anyone think it will
extend into HELOCs as well? Could that kind of credit either become more
difficult to get or disappear altogether? Would it be legal for banks to
roll back lines of credit? |
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| joetaxpayer |
| Posted: Mon Aug 13, 2007 3:35 pm |
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Ashley wrote:
Quote: With all that is going on in the credit markets, does anyone think it will
extend into HELOCs as well? Could that kind of credit either become more
difficult to get or disappear altogether? Would it be legal for banks to
roll back lines of credit?
It may very well impact the availability of new lines of credit. Other
thread here talks about a general run on the banks. That would imply
reduced loans of this type.
Legal to reduce open lines? depends on the original contract. Some allow
for a change of terms on proper notice from the bank. Some protect the
borrower and the bank has to adhere to the original terms.
One thought - HELOCs are typically kept by the originating bank, i.e. I
don't believe any are packaged into loans that are sold as bonds. The
bank where I got my first mortgage and HELOC looks like business as
usual. They had the traditional full document requirements, I doubt I'll
be hearing they want to reduce my HELOC availability.
JOE |
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| Frank Rizzo |
| Posted: Mon Aug 13, 2007 8:12 pm |
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On Aug 13, 5:29 am, "Ashley" <m...@wave-3.com> wrote:
Quote: With all that is going on in the credit markets, does anyone think it will
extend into HELOCs as well? Could that kind of credit either become more
difficult to get or disappear altogether? Would it be legal for banks to
roll back lines of credit?
ONe of the largest lenders has already stopped writing them because
they cannot be sold in secondary.....As far as rolling back, it's a
grey area..... |
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