U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.
The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.
More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.
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2 comments:
Uh huh. Just in time for those people who have been laid off, had their hours reduced, and have taken two PART-TIME jobs. As soon as the stock market bubble crashes and their meager savings and investments are wiped clean (again) and their health care costs go up, too, well...when citizens run out of money, shelter, and food, bullets and clubs tend to help them get all that back. Can't happen here? LOL!! Double LOL.
The poop just gets deeper with these banks.Thats like 90% of the car loans now are sub-prime.It will all hit the fan soon.
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