Ping!
Well, that’s not good.
The key phrase being “home equity borrowers”. You aren’t supposed to sap equity from your home but in times of dire emergency. This does not include kitchen remodeling, a new SUV or a trip to the Superbowl.
I’m not surprised in the least that massive numbers of people, credit-worthy or not, who drained their home of equity and squandered the fictitious money are now way upside-down on their loans.
I’m not surprised in the least. That is a huge number, however and lots of them will be walking away from their homes or worse, will get a nice Obama cramdown so we end up paying for their European vacation and five-star backyard landscaping with Olympic pool and waterfall.
My branch has cut about a third of the help since JP Morgan took over.
I still think it’s the best bank going.