HELOCS....We're baaaaaaaack!...

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Submitted by flu on November 26, 2012 - 8:07am

Lol.....

http://finance.yahoo.com/news/home-equit...

Home Equity Loans Make Comeback Fueling U.S. Spending

Home equity lines of credit that fueled a spending spree during the U.S. property boom are back.
After six years of declines, lending for so-called Helocs will rise 30 percent to $79.6 billion in 2012, the highest level since the start of the financial crisis in 2008, according to the economics research unit of Moody's Corp. Originations next year will jump another 31 percent to $104 billion, it projected.
Lending tied to real estate is reviving as record-low mortgage rates spur the housing recovery while an improving job market makes it easier for people to borrow. A rise in home equity lines is in turn helping the economy, fueling purchase of goods like televisions and refrigerators. Consumer spending, the biggest part of the economy, accelerated to a 2 percent annual rate last quarter from a 1.5 percent pace in the prior period.
.....

Submitted by flu on November 26, 2012 - 8:12am.

Oh... And the other Gem...

GM has repurchased Ally Financial Foreign operations (Formerly GMAC).....

http://www.autoblog.com/2012/11/24/gener...

So we went full circle here.

GM went BK...Meanwhile GMAC went south too because in part due to subprime lending.. GM freed itself from GMAC. GM reorganized, got new money...Now, that new car sales is slightly improving, it wants to get back into the subprime loan game again and has been using it's new money to write more subprimes (again)...And now uses it's new money to repurchase part of Ally Financial...

Wow.... great deal....

Submitted by bearishgurl on November 26, 2012 - 1:01pm.

LOL ..... wonder if 125% LTV will come back into "vogue" by 2014 ...

Submitted by spdrun on November 26, 2012 - 2:33pm.

Assuming I own a place free and clear, what's wrong with being able to pull out say 75% of the equity in a flexible manner? HELOCs are only a danger if abused by lenders and debtors.

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