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Sunday Reading…U.S. lenders freeze home equity credit lines

April 13th, 2008 at 8:30pm · 1 Comment

U.S. lenders freeze home equity credit lines

It was the lending institutions and mortgage originators that got the United States into this credit mess, but it is the American consumers, taxpayers and those companies’ shareholders who will end up shouldering most of the costs.

The latest example of this is in the mass freezing of home equity lines of credit going on across the United States. Reeling from losses on their wretched loan decisions of recent years, lenders are preventing borrowers with pristine credit and significant equity in their homes from tapping into credit lines that they paid dearly to secure. ….read more

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This article illustrates how and why this recession will deepen into something much worse than most living Americans have experienced before.

Tags: Editorial · General Market Commentary

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