Article: Home equity loans getting a second look

Home equity loans, one of the last large tax deductions available to homeowners, are coming under attack from some Congressmen who are skeptical about how the loans are being used.

Congress is studying a bill that would effectively close one major loophole, which lenders are aggressively using to finance purchases of automobiles.

The bill, introduced last May by US Rep. Frank J. Guarini (D-N.J.), is pending before the House Ways and Means Committee and would be voted on as part of a general tax bill. However, the chairman of the committee, Dan Rostentowski (D-Ill.) has said in other reports that he sees little chance of a tax bill coming up for a vote this year.

Lawmakers, led by Guarini, ...

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