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Home Equity Loans

February 1, 1993 | From Associated Press
Wrenching tales of unscrupulous finance companies taking advantage of minority farm workers in Arizona or elderly homeowners in Georgia have generated fresh scrutiny of the little-watched industry. As the government begins its own investigations, multimillion-dollar lawsuits are being filed nationwide on behalf of borrowers. And juries are handing down severe punishment to some of the lenders.
January 9, 2014 | By E. Scott Reckard
Delinquencies on consumer loans have hit another all-time low, according to the American Bankers Assn., which says that is good news for the economy as well as for the balance sheets of the banks that are owed money. Bank credit-card delinquencies rose slightly but remained well below their historical norm. At the same time, the rate of missed payments fell on personal loans and loans for cars, mobile homes, boats and recreational vehicles. There was sharp improvement in payments on home-equity loans and lines of credit.
January 14, 1992
Glendale Federal Bank, the main subsidiary of Glenfed Inc., said it has reached an agreement to sell up to $500 million of its fixed home-equity loans to Household International Inc., a Prospect Heights, Ill., financial services company. Terms of the sale, which is expected to close March 1, were not disclosed.
April 19, 2013 | By Kenneth R. Harney
WASHINGTON - Using your home as an ATM no longer is a financial option, but the tools that allowed owners to pull out massive amounts of money during the boom years - equity credit lines and second mortgages - are making a comeback. Banking and credit analysts say the dollar volumes of new originations of home equity loans are rising again, significantly so in areas of the country that are experiencing post-recession rebounds in property values. These include California, Arizona, New Mexico, most of the Atlantic coastal states, the Pacific Northwest, Texas and parts of the Midwest.
December 14, 1988 | Associated Press
A national survey on home equity loans found that Americans use them with caution and limit the amounts they borrow because "they're well aware that they're betting their home," private researchers said today. Fifty-eight percent of homeowners had a first mortgage and 11% had other loans secured by home equity, according to a July-November survey of 2,510 households by the Survey Research Center at the University of Michigan.
October 5, 1988 | Associated Press
More than half the financial institutions surveyed by a consumer group reserve the right to make changes in home equity loan terms, including raising the interest rate and demanding immediate repayment. The Consumers Union, the publisher of Consumer Reports, surveyed 45 institutions: 10 major banks and five major savings and loan institutions in each of three metropolitan areas--Washington, New York and San Francisco.
April 20, 1989 | LYNN SIMROSS, Times Staff Writer
Thinking of getting a home equity loan so you can pay off some of your credit card debts, put a new roof on your house, finance an expensive car or send your son or daughter to college this fall? That's not a bad idea, but keep in mind, it's buyer be careful. You better check out the company that's offering the loan and know what you're getting: Are there fees and points to pay, closing costs, charges for using the credit line? What can you deduct from your taxes? Can the variable interest rate suddenly change from 12% to 20%?
February 11, 1989 | Carla Lazzareschi
QUESTION: Can you please tell me whether interest on home equity loans remains fully tax deductible or does the interest deduction apply only to first and second mortgages? This is particularly important to me because I know the interest deduction on consumer loans is fast fading, and I am thinking of using the proceeds from a home equity loan to pay off my consumer debt.
November 2, 1986 | DAVID W. MYERS
If you've considered all the pros and cons of a home-equity credit line and decided that the account would make good financial sense, be prepared to do a lot of comparison shopping. Most home-equity loans being offered have adjustable interest rates. As a result, financial planners say, it's extremely important to find out how often the rate will change and what index will be used to make those periodic adjustments.
May 20, 1987 | BILL SING, Times Staff Writer
Many home equity loans offered by major California savings institutions lack protection against rising interest rates and carry high annual fees and other costs that may make them unwise for some consumers, a survey to be released today contends. It also is difficult to compare loans between institutions because fees and other costs are often calculated differently and sometimes are not fully disclosed initially, the survey says.
April 15, 2013 | By The Times editorial board
Consumer advocates have long battled with companies that offer high-interest "payday loans" over the lenders' proposals to increase the maximum amount a person can borrow. Now, a group of those advocates is taking the offensive, pushing a bill that would fix two fundamental problems with payday lending as it's practiced in California. The point isn't to end that form of lending - as the widespread use of the service shows, it responds to a real need - but to stop the loans from becoming a debt trap for desperate consumers.
January 3, 2013 | By E. Scott Reckard
Fewer Americans are falling behind on their credit card payments, a bankers trade group says, but delinquencies are rising on other types of consumer loans, including home-equity loans and credit lines. The American Bankers Assn. said Thursday that overall missed payments for eight types of installment loans fell from 2.24% of all accounts in the second quarter to 2.16% in the third quarter. That was well below the 15-year average of 2.4%. The trade group said bank card delinquencies dropped to their lowest levels since 1994, falling to 2.75% of all accounts -- well below the 15-year average of 3.89%.  “Consumers are paying close attention to their finances as they continue to pay down debt in an uncertain economy,” the group's chief economist, James Chessen, said in announcing a quarterly assessment of how consumer loans are faring.
April 5, 2012 | By E. Scott Reckard
Delinquencies are lower in all 11 consumer loan categories tracked by the American Bankers Assn. , a rare occurence that reflects the nation's improving jobs picture and progress that consumers and banks have made in cleaning up their respective financial messes. During the fourth quarter of 2011, borrowers were current more often than in the third quarter on home equity loans and lines of credit, property-improvement loans and loans for cars, boats and mobile homes, the banker trade group said in a new report . Delinquencies on bank-issued credit cards were at 3.27% of all accounts, down from 5.01% in the second quarter of 2009.
August 22, 2010 | By Andrew Leckey
Question: I am a shareholder in Inc. and would like to know if the company's stock can keep up with expectations. Answer: The world's largest online retailer has a reputation for low prices and customer loyalty, but it must spend a lot of money to maintain its rapid growth. That's how high expectations can outpace reality. Amazon's new Kindle e-reader models, aided by price cuts, have proved popular. One downloads books using 3G cellular networks and Wi-Fi, while the other uses only Wi-Fi.
July 8, 2010 | By E. Scott Reckard, Los Angeles Times
A leading bank trade group said Americans are making headway in cleaning up their finances, with borrowers missing fewer payments on credit cards and other consumer loans in the first three months of the year — the third straight quarterly decline. Delinquency rates also fell for home equity loans and credit lines in the first quarter, according to an analysis released Wednesday by the American Bankers Assn. It was the first quarter that home equity loan delinquencies had fallen in two years, an encouraging sign, said James Chessen, chief economist for the banking trade group.
January 8, 2010 | By E. Scott Reckard
Delinquencies on home equity loans and lines of credit jumped to record levels in the third quarter, a banking trade group said Thursday. Home equity loan delinquencies rose to a record 4.3% of such accounts from 4.01% in the second quarter, the American Bankers Assn. reported. Delinquencies on home equity lines of credit also hit a record, climbing to 2.12% from 1.92%. The troubles with housing debt contrasted with an improvement seen with other consumer loans, the bankers group said.
May 19, 1988 | Associated Press
The House Banking Committee voted unanimously today to require banks and credit unions to provide more timely and complete information on home equity loans, or second mortgages. Rep. Frank Annunzio (D-Ill.), chairman of the committee's consumer affairs subcommittee, said: "This legislation will enable consumers to understand fully the conditions of this new form of consumer borrowing. It will make clear to them that they risk the loss of their home in the event of default."
September 8, 1991 | CATHERINE COLLINS, CATHERINE COLLINS is a Washington writer
The phrase "too smart for their own good" might apply to the aggressive marketers of tax-deductible home equity loans. The pitching of these loans as a substitute for non-deductible consumer lending by the nation's banks is attracting scrutiny from lawmakers. For instance, consider a recent newspaper advertisement run by a Virginia bank, which read, "Get a TaxSmart auto loan now . . . And the government could cover at least one of your payments this year. Has the government gone soft?
November 2, 2009 | E. Scott Reckard
Traditional 30-year mortgages these days are unusually affordable by historical standards, but if you're looking for a home equity line of credit, don't expect any deals. The market for such credit lines, which practically shut down as home prices tumbled, remains tight as a drum despite signs of life in the rest of the home loan market. And offers that let you pay only the prime rate or just above that benchmark are long gone. "The days of lenders falling all over themselves to help you empty the equity out of your home aren't coming back any time soon," said Keith Gumbinger, vice president at loan data tracker HSH Associates.
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