Once again Mr. Mortgage proves to be an extraordinary source of information on the mortgage debt crisis with regard to HELOCs: Home Equity Lines of Credit.
Fresh news out…S&P pulled a slick one. They STOPPED rating second mortgage RMBS citing “anamolous and unprecedented” borrower behavior. Here is a little piece from Bloomberg that enhances the previous story very well, calling all Home Equity loans ‘junk’.
Remember, this is a $1.3 TRILLION market with the bulk belonging to very few banks such as BofA, Wells, Chase, CITI, Countrywide, WAMU, National City, GMAC and IndyMac. I put a couple of nice quotes below. This could turn out to be a fairly large story in the making.
Read the complete story here:HOME EQUITY LOANS - A BIG BANK KILLER. S&P STOPS RATING 2ND MORTGAGE RMBS!
Download the Fitch Report here:
US Home Equity Woes: Banks Grapple with Higher Losses
This is our own compilation of US Financial Institution Exposure to HELOCs from Fitch in which we provide sorts by percent equity, assets, and loans.
Eenie meenie minee moe, which bank will be the next to go?
