Home Equity Loans and The Housing Market

Some of the top lenders in the home equity lending field have recently announced that they are making changes in their lending processes. In response to recent market conditions, Wells Fargo and Company made public its decision to significantly reduce the number of stated income home equity loans that it would be making.

Only in-house lenders will be able to accept stated income applications after Tuesday, November 20, 2007, as Wells Fargo is removing this option from the hands of independent brokers. JP Morgan Chase and Co. also moved to tighten their home equity lending standards. There are lenders on every level of the industry that are quietly moving towards restricting this type of lending to those with credit scores that indicate less of a risk to the lender.

Many smaller lenders have completely eliminated home equity lending altogether, stated income or not, good credit or bad.