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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: ild who wrote (30776)	5/25/2005 3:57:35 PM
From: CalculatedRisk	Read Replies (1) of 116555

In the article it says: Many of these loans are made as lines of credit, accessed and paid back at a borrower's whim. So it's tricky to see how much money is actually at risk. The Consumer Bankers of America trade group estimates the nation's typical home-equity loan made was for $77,000 last year - up 40 percent in two years. Just $36,000 of home-equity loans were accessed by borrowers in 2004, a 20 percent increase since 2002. That usage rate is in line with estimates of California home-equity trends by LoanPerformance of San Francisco. Statewide, they found $150 billion in home-equity borrowing with $70 billion accessed by the property owners. So I think the table is mislabeled as you suggest. Strange how they use the word "borrowed" to mean "available to be borrowed". "Accessed" apparently means taken out ... It looks like the table numbers should be about 40% to 45% of the listed numbers - still incredibly high. At least that works with the FED Flow of Funds report (the FED doesn't seem to break out HELOCs from mortgages).

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