Tuesday, March 11, 2008

WSJ on Souring Home-Equity Loans

This is a followup to the Housing Wire story yesterday on HELOCs.

From Robin Sidel at the WSJ: Latest Trouble Spot for Banks: Souring Home-Equity Loans
Here comes another headache for banks suffering from the mortgage downturn: Losses on home-equity loans are soaring ...

"These losses are well beyond what we would have modeled...and continue to get worse," said Charles Scharf, head of J.P. Morgan's retail business.