- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Wells Fargo suspends new HELOC loans
Posted on 12/5/23 at 2:40 pm
Posted on 12/5/23 at 2:40 pm
Due to current market conditions, we are temporarily suspending new applications for home equity lines of credit.
Do they see a price correction on the horizon and are afraid a lot of equity is about to disappear?
LINK
Do they see a price correction on the horizon and are afraid a lot of equity is about to disappear?
quote:
Delinquencies (adjusted for inflation) have now reached the same level as 2008.
Except, the difference is that back then interest rates and home prices had ALREADY peaked and were coming down. Whereas now, neither is coming down yet.
More importantly, we see that delinquencies continued to rise long after home prices began to fall.
In summary, what we are witnessing is the largest policy error in market history.
LINK
20
Posted on 12/5/23 at 2:42 pm to stout
Explain this like I am 5 years old. I have an outstanding balance of a HELOC (renovations), but my home is paid off. What implications would that have.
Posted on 12/5/23 at 2:43 pm to stout
quote:
In summary, what we are witnessing is the largest policy error in market history.
I wonder what they mean by this? I'm not sure if decades of reckless spending and addiction to cheap capital what they mean or something more specific.
Posted on 12/5/23 at 2:44 pm to back9Tiger
If you have a HELOC, guess what? Your house ain't paid off any more.
Posted on 12/5/23 at 2:45 pm to back9Tiger
It wont affect you. This is for new HELOC loans only.
To me, it seems like they are afraid of extending money to someone and that person ends up in a negative equity situation. A HELOC is already in second position most of the time as it is so that's already a risk much less adding a negative equity situation on top of it. They would have zero shot of recovering anything in a foreclosure sale.
To me, it seems like they are afraid of extending money to someone and that person ends up in a negative equity situation. A HELOC is already in second position most of the time as it is so that's already a risk much less adding a negative equity situation on top of it. They would have zero shot of recovering anything in a foreclosure sale.
Posted on 12/5/23 at 2:47 pm to back9Tiger
quote:
I have an outstanding balance of a HELOC (renovations), but my home is paid off.
Posted on 12/5/23 at 2:49 pm to billjamin
quote:
I wonder what they mean by this?
I took it as money was too cheap for too long. The cheap money allowed house prices to far outpace wage growth and now if there is a correction you will have a lot of people with negative equity that will not be able to unload their houses.
I know the board likes to point out that a lot of people have low mortgage rates, inventory shortages, etc but people still move for work, still get divorced, get fired, and 100 other reasons they have to sell fast. Hard to do that right now when affordability is sky-high and buyers are priced out.
This post was edited on 12/5/23 at 2:51 pm
Posted on 12/5/23 at 2:51 pm to DownSouthJukin
It means they been loaning out money to folks based on inflated pandemic equity. They see a pricing correction coming and all that equity about to disappear. They know they are screwed they are just trying to reduce the pain of said screwing.
Posted on 12/5/23 at 2:52 pm to stout
Don't they do this all the time?
Could just be they don't want but a certain amount of the dangerous debt on their balance sheet at one time
Quick google shows they suspended the HELOCs almost a year ago.
Could just be they don't want but a certain amount of the dangerous debt on their balance sheet at one time
Quick google shows they suspended the HELOCs almost a year ago.
This post was edited on 12/5/23 at 2:53 pm
Posted on 12/5/23 at 2:53 pm to stout
So will this stop people from flipping houses or will the housing market alone keep that from happening?
Posted on 12/5/23 at 2:54 pm to back9Tiger
quote:
I have an outstanding balance of a HELOC (renovations), but my home is paid off. What implications would that have.
If you fail to pay your HELOC payments, the bank can take your house. They can't modify the terms of the loan unless there is specific verbiage that allows it or if it's on a variable rate.
Posted on 12/5/23 at 2:55 pm to stout
I am pretty certain that WF has been out of or almost out of the HELOC business for quite a while in most of the US. I know in our area they have been for at least 3 years. We bought a piece of property 3 years ago with a HELOC and WF wasn't doing them in our area then. Went to a local credit union.
Posted on 12/5/23 at 2:56 pm to AwgustaDawg
quote:
We bought a piece of property 3 years ago with a HELOC and WF wasn't doing them in our area then. Went to a local credit union.
I know they stopped once in 2020 but I was under the impression they had started back up.
Posted on 12/5/23 at 2:56 pm to stout
quote:
To me, it seems like they are afraid of extending money to someone and that person ends up in a negative equity situation. A HELOC is already in second position most of the time as it is so that's already a risk much less adding a negative equity situation on top of it. They would have zero shot of recovering anything in a foreclosure sale.
Reminds me of my thread from a few days ago. I guess CC companies are about to get pissed that they can't rely on HELOCs anymore
Posted on 12/5/23 at 2:58 pm to stout
Finna pick me up a Rolex for a song.
Posted on 12/5/23 at 2:59 pm to stout
i have been running a lot more since 2020
I miss the days of low rates and home renos everywhere. Always had a dumpster to toss my dogs poop bag in and port-a-john in case i got the trots
sad state of affairs these days. I can think of one on the routes these days
I miss the days of low rates and home renos everywhere. Always had a dumpster to toss my dogs poop bag in and port-a-john in case i got the trots
sad state of affairs these days. I can think of one on the routes these days
Posted on 12/5/23 at 3:00 pm to Dire Wolf
Im sorry this has been so hard on you
Posted on 12/5/23 at 3:01 pm to stout
quote:
Im sorry this has been so hard on you
we will recover. one doompost at a time
Posted on 12/5/23 at 3:02 pm to stout
Values up another .2 in October so we are at 7% for the year
Rates dipping below 6% on par. RE Agents were right
Rates dipping below 6% on par. RE Agents were right
Posted on 12/5/23 at 3:02 pm to back9Tiger
quote:
I have an outstanding balance of a HELOC
is your heloc based on a so many year term?
Page 1 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News