Wells Fargo no longer accepting home-equity loan applications — at least for now
Wells Fargo, one of the nation’s largest home lenders, has suspended issuing home equity loans, according to news reports.
The bank halted issuing new home equity loans amid the economic uncertainty caused by the COVID-19 crisis. According to bank spokesman Tom Goyda as reported by Reuters, the suspension will last until bank executives have a better handle on the economic recovery.
The move follows a similar action earlier this month by JPMorgan Chase & Co.
Ron Shuffield, President & CEO of Berkshire Hathaway HomeServices EWM Realty, doesn’t expect the moves to impact the local residential market.
“I don’t think it will emotionally impact buyers or those looking to buy a fixer upper,” he said.
“Any tightening of lending can impact a loan. But this is not used to buy a home. This normally comes into play for home improvements, such as renovating a bathroom or kitchen. Buyers are more interested in long-term mortgages rather than a home equity loan.”
This story was originally published April 30, 2020 at 5:31 PM.
