[quote=patb]The banks would charge a fee to process a HELOC, so they just did them, as long as they could process them into REMIC…
when the REMICs collapsed they cancelled HELOCs like mad.[/quote]
Yes, patb, it was my understanding that banks did not charge a fee to process HELOC’s. But after property values started falling, banks began cutting off credit lines midstream as well as canceling unused LOC’s and filing reconveyances.
By 2006, the “REMIC” investors were probably screaming loud and clear to the banks to limit any further exposure to losses due to falling residential RE values.
