Banks and thrifts are poised to pick up the pieces now that the leaders in one of the fastest-growing, most controversial consumer finance sectors have hit a wall.

Sovereign Bancorp, First Union Corp., and U.S. Bancorp are among the companies already piloting high-loan-to-value home equity programs. The specialty finance companies that dominate the field have run into a liquidity crunch, but demand from consumers is strong.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.