National Mortgage News-
Resetting home equity lines of credit to the tune of $150 billion over the next 48 months, combined with a near-certain increase in short term interest rates over that same period, could very well be a bad situation for institutions who hold these assets.
Simply creating a preemptive solution, or series of solutions, for borrowers facing hardship is not enough. While it’s important to know that borrowers fully understand the reset risk they face as well as the options available to them; it’s critical that those consumers actually follow through to reduce their risk – and yours.
In a perfect world, the consumer who is facing a significant increase in their monthly HELOC payment would not only be aware of the coming increase, but would be mindful of all available options before moving quickly toward a solution that benefits all parties.