Well this probably isn’t a good sign for the economy…… any other banks cutting off equity lines?
(media.greatawakening.win)
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Expecting real estate prices to go down, leaving no equity, and so people will walk away from their houses (and payments).
Credit has been tightening, all around.
Not good.
https://www.wellsfargo.com/equity/line-of-credit-details/
This happened under Obama when the housing market collapsed. Almost all banks stopped new HELOC loans and anyone that had them, they were canceled. So if you had a HELCO for 50k and only used 15k that was the loan amount, the rest was canceled.
I have noticed places I've been looking at buying are cutting prices on zillow
Haven't been available from WF for 3+ years...
Wells Fargo has not offered home equity loans for years. Same as the other big banks. Don’t know why but this is not new
Real estate is gonna dumo
It won't be like 2009, everyone is locked into a 3.5% or better mortgage. The market is just going to stagnate. Blackrock will be ready to pickup the few defaults that occur.
Everyone has been worried about hyperinflation. When the real problem wii be depression and a drop in prices on all things usually bought on credit.when this is over americas addiction to credit will be decimated. It's about time
Figure if you're locked in below 4% banks are desperate to refi you to market rate.
It's a negative indicator of banking health.
It's a negative indicator of banking appetite for additional risk in a particular asset category. Sometimes this is a proxy for health. Not always and for tons of easily imagined reasons.
If interest rates are higher, wouldn't a bank make MORE money by lending MORE credfit?
Yes.
Therefore, it is not about higher interest rates.
Then, it's about real estate prices dropping, which is what I said in a previous post.
Rising interest rates are leading to lower real estate prices (just like artificially lowering interest rates resulted in the real estate price bubble), so we sort of agree.