Home Equity Loan Delinquencies Are Rising (BAC, JPM)
The 2007 housing crisis might be technically over but its ramifications, in the form of home equity loan delinquency payments, have persisted. Although delinquent mortgage payments have sharply declined recently, more homeowners have become lax in paying off home-equity lines of credit (Helocs) that many took out ten years ago. As a result, large lenders, including the country’s biggest banks such as JPMorgan Chase (JPM) and Citigroup are increasingly feeling the pinch of the losses incurred by these unpaid loans according to the Wall Street Journal.
The largest home equity lender, Bank of America (BAC), reported that Helocs, which are loans generally used by borrowers to pay for renovations, college tuition and other expenses, racked up a total of $250 million in balances that were at least 30 days behind payment in the second quarter of this year, a 56% increase from a year before, according to company filings. At JPMorgan Chase, the total amount of delinquent Helocs in the second quarter was $647 million, a 21% increase from the previous year. Citigroup reported delinquent balances at a total of $338 million for the second quarter, a whopping 105% increase from the prior year.
Helocs Dollar Amounts On the Rise
However, despite these mounting losses, banks are still granting home equity lines of credit (or Helocs) to customers, with last year being the highest dollar amount since 2007 said the Journal. But lenders are not being totally reckless either as they are requiring clients to have high credit scores in addition to having at least 10% to 15% equity in their homes. And some banks, like Wells Fargo & Co (WFC) and Bank of America, no longer allow borrowers to pay only the interest on Helocs.
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They sure seem like they’re on DOWNERS by how removed they behave.
I meant _they’re_ obviously SPIES in my previous comment.
I told the lawyer, JILLIAN COLE, from ARONBERG, GOLGEHN & GARMISA in the hallway outside the courtroom in the DALEY CENTER on 50 WEST WASHINGTON, DOWNTOWN CHICAGO I tried for the LOAN MOD in regards to my BUSINESS PROPERTY.
She said – you know that’s not going to happen.
How presumptive of her to say that to me like I wasted my time dealing with the schmuck ANGEL GARCIA from BAYVIEW who is obviously their FRAUD REPRESENTATIVE.
Moreover, JILLIAN COLE was on AG LISA MADIGAN’s STAFF which presents CONFLICT OF INTEREST ISSUES in FC.
DICK CHISOLM the U.S. TREASURY DEPARTMENT LAWYER said to me she should remove herself from the case because of that.
My former FBI AGENT father said that’s up to the judge which further solidifies my claim I was set up by the investors in their own fraud because their obviously SPIES.
The notion the judge would have to decide JILLIAN COLE to be COMPROMISED is in itself, unlawful CONFLICT OF INTEREST because the record would prove they’re both lawyers who SPY based entirely upon his speculative views.
The problem stems from 80/20 home loans, from the boom. Not everyone had down payments, so a 20% Home Equity Line was Combined, on top of a Primary Mortgage for 100% Financing.
What we are probably seeing is… as these loans reset, the Interest-Only Payment Periods are expiring, and suddenly you’re expected to pay off the entire balance over 5-10 years. A new.. horrid form of Payment Shock.
If Banks were actually smart.. they’d try to modify these, as many of them were actually kept on their Balance Sheets. But.. Nope, I’m sure we’ll see the same crap.. all over again.
I called the FBI WHITE COLLAR CRIMES DIVISION one day to inquire with them if I should call FINCEN in regards to the MORTGAGE FRAUD.
The lady FBI AGENT said to me FINCEN what’s that?
I said I don’t know & she told me to call FINCEN & see what they tell me & call her back & tell her what they said & in the meanwhile she would look up FINCEN.
I called there & they told me to call the FBI.
The whole thing gave me the creeps because I knew they were covering stuff up.
I was told by the FBI over the phone to call CHASE & tell them I want the note LOL.
They’re IDENTITY THIEVES who planned to cover it up by trying to criminalize the innocent.
The investors in their own fraud stole my social # 341-66-6698 by IDENTITY THEFT.