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Article: Banks Respond to Demand For New Home Equity Loans
- Article from:
- The Washington Post
- Article date:
- September 9, 1987
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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The new tax law is encouraging more Americans to use their homes
as collateral for consumer loans, and banks-particularly large
ones-are responding to the trend, a survey showed yesterday.
Banking industry and consumer groups, however, are warning that
home equity loans have pitfalls and are not for everyone.
Consumers in 1986 borrowed $175 billion in second mortgages, $35
billion of that in the relatively new home equity loans, the American
Bankers Association said, citing figures from the National Second
Mortgage Association.
That compares with $150 billion in second mortgages and about
$25 billion in home equity loans in 1985.