They aren't creating new products, but some lenders are advising cash-strapped customers in high-tax states to tap home equity or other credit lines to prepay property taxes before the new tax law kicks in.
Any decline in home equity balances could be offset by higher demand for other types of consumer loans. The worry is that only borrowers with blemished credit will take out home equity loans, increasing banks’ risk.
A Kiryas Joel, N.Y., man was sentenced to 18 months in prison and ordered to forfeit $1.2 million to federal authorities for his role in a mortgage-fraud operation in which prosecutors had charged 15 people in all.
Recent research into customer preferences regarding home equity lending reveals that banks need to better engage with their customers to understand their needs and expectations, and then guide them to optimized HELOC product offerings that precisely meet their needs.