Morgan Stanley HELOCs: Don’t Delay, Act Now!

Message to homeowners: If you have a line of credit or Home Equity (HELOC) and are even considering hitting it, you better hurry up and tap that thang.

Wait too long, and you may receive a nastygram from your Bank/Broker telling you "Too Late!"

At least, that’s what happened to "several thousand" Morgan Stanley clients. The nation’s second largest brokerage firm, after a periodic review, stated:

"Consistent with the terms of the HELOC, or home-equity line of credit, Morgan Stanley periodically reassesses client property values and risk profiles,” said Christine Pollak, a Morgan Stanley spokeswoman in New York. "A segment of clients was recently notified of a change in the status of their home equity line of credit or HELOC due to a change in the value of their property and/or their credit profile.” 

Its good to see that lenders have become more proactive about risk, albeit 5 years to late.

There’s a lesson in this to home owners who were thinking about using this line of financing: If you have those HELOC checks your lender sent you — AND YOU CAN AFFORD TO SERVICE THE LOAN — then you better hurry up and use them before its too late!


Morgan Stanley Said to Freeze Client Home-Equity Credit Lines
Christine Harper
Bloomberg,  Aug. 5 2008

Category: Credit, Derivatives, Real Estate

Morgan Stanley: Act Now, Don’t Delay!

Category: Credit, Derivatives, Real Estate

The Larry Kudlow Recession Summer Rally

Category: Contrary Indicators, Markets, Technical Analysis

Commodities Drop “Correction not Collapse”

Tobias Merath, a commodity analyst at Credit Suisse Group, talks with Bloomberg’s Bernard Lo and Haslinda Amin in Singapore about the impact of declining demand, falling prices and the global economic slowdown on commodity markets.

click for video


00:00 Demand decline, global slowdown; speculation
03:13 Soft commodities, "correction not collapse"
Running time 05:52

Merath Says Commodities Drop `Correction not Collapse’: Video
Bloomberg, Aug. 6 2008

Category: Commodities, Markets, Video

Cheap Concert Tickets!

Category: Economy, Music

The Old Monster is Back

Category: Federal Reserve, Inflation

FOMC Dissents

Category: Data Analysis, Federal Reserve

No Change in Rates, Substantial Inflation Risk

Category: Economy, Federal Reserve, Inflation

Protest at the Fed

While we are sitting around waiting for the widely anticipated stand pat 2:15 FOMC Fed statement, here are some interesting photos of a protest at last months meeting:




Full set of photos here

Hat tip: Cunning Realist


Read More

Category: Bailouts, Federal Reserve, Psychology

‘The US banking system is sound…’

Category: Consumer Spending, Economy, Retail