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Article: The Rules on Home-Equity Lines
- Article from:
- The Washington Post
- Article date:
- September 20, 2008
- Author:
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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There are federal laws that can provide you some protection if
your lender wants to cancel or reduce your home-equity line of
credit.
Home-equity lines are popular with homeowners because they make
it easy to tap into cash. But in the wake of the mortgage meltdown,
lenders are reducing or canceling many of these credit lines because
of concerns over falling home values.
This summer, both the Federal Deposit Insurance Corp. and the
Office of Thrift Supervision issued guidance to the institutions
they oversee to remind them that when they change these credit
lines, they have to follow the laws. Among the federal laws that
protect consumers in these situations are the federal Truth in
Lending ...