Alert July 01, 2008

FDIC Issues Guidance on Reducing and Suspending HELOCs

The FDIC issued guidance to remind FDIC-supervised banks that if, for risk management purposes, they decide to reduce credit limits or suspend advances on HELOCs, certain legal requirements designed to protect consumers must be followed. The guidance includes best practices for working with borrowers, where possible, to minimize hardships that may result from such reductions or suspensions. Click here for the guidance.