Wells Fargo stops accepting home equity credit line applications
Wells Fargo will temporarily stop accepting applications for home equity lines of credit, following a similar move by rival JPMorgan Chase.
Wells Fargo will stop taking HELOC applications after Thursday as the largest U.S. home lender navigates the economic impact of the coronavirus, according to company spokesman Tom Goyda.
"The decision to temporarily suspend the origination of new HELOC reflects careful consideration of current market conditions and the uncertainty around the timing and scope of the anticipated economic recovery," Goyda said in a statement.
HELOCs are a way for homeowners to build up a cash cushion while capitalizing on interest rate cuts by the Federal Reserve by using properties as collateral. Banks have been getting choosier about underwriting HELOCs during the coronavirus pandemic.
JPMorgan announced a similar move in mid-April, suggesting at the time that customers could still tap into their home's equity through a cash-out refinance of their existing mortgage.