No credit
August 18, 2008 | alternatives, industry | Comments (1)Even rules for home equity lines of credit of being tighten according to this story. It’s amazing that the media continues to write stories about banks and other institutions tightening credit while criticizing payday lenders for keeping credit available.
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“A home is not supposed to be an ATM,” according to Professor Gary Smith of Ponoma College.
Indeed. And a postdated check from an empty bank account is also not supposed to be an ATM.
Pundit, I think you are misconstruing the media coverage of the HELOC issue. The banks handed out money profligately during the bubble and now they’ve been forced to cut back. They actually expect homeowners like Denise Lopez to have equity to back their lines of credit. That’s because risky subprime lending got the economy in a mess.
But risky subprime lending is what the payday advance business is. It belongs to the era of exuberance. Now that the party’s over, you guys have been losing battles (OR, OH, NH, DC) because you seem to belong to a discredited model of credit.