No More HELOCs! Major Banks Stop HELOC Originations

The 2nd Financial Crisis Of The 21st Century Begins! Chase And Wells Fargo Stop Originations Of HELOCs. 

HELOCs

Strap yourselves in and get ready to rumble! America is in the infancy of its second financial crisis of the 21st century.

Two of the largest banks in the US have announced they will terminate all originations of HELOCs until further notice. HELOCs are also known as Home Equity Lines of Credit.

Both JPMorgan Chase and Wells Fargo announced they are no longer accepting applications for new HELOCs.

Wells Fargo Spokesperson Tom Goyda said the change went into effect last Friday. Goyda said Wells Fargo is making the change due to uncertainty in the economy.

The decision to suspend the origination of new HELOCs reflects careful consideration of current market conditions and the uncertainty around the timing and scope of the anticipated economic recovery.

Wells Fargo’s decision will not impact the bank’s existing HELOC customers. Borrowers with existing HELOCs will be able to draw funds on those lines of credit.

Read more at MFI-Miami

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