The Federal Reserve Bank of St. Louis has released a short guide regarding a consumer’s rights when his home equity line of credit has been frozen or reduced by the lender. The tips underline the lender’s responsibility to give at least three days notice before freezing or reducing a credit line, and also urge the consumer to contact and discuss with his lender the reasons for and any remedies to the credit freeze or reduction.
first tuesday take: As the financial crisis continues to seep into everyday life, brokers and their agents must be aware of this information if they are to pass it on to clients. The Federal Reserve banks are a valuable educational resource for both real estate professionals and the general public, and there is no better time to get acquainted with the economics of real estate than by reading now when the market is nearing its ebb.
Re: “5 Tips for Dealing with Home Equity Line Freeze” by the Federal Reserve Bank of St. Louis