Americans Are Not Using Their Homes as Piggy Banks Anymore

Gwen Everett and Shahien Nasiripour, in an October 28, 2019 article in, report that American homeowners appear to have learned the lessons of the 2008 Great Recession and are not using the equity in their homes to finance large purchases unrelated to housing.

This is good news in that the American consumer is not quite as reckless with debt as in the past. It is bad news for lenders because they will need to look for other methods to grow their loan portfolios than HELOCs. Lenders can profitability reach deeper into the loan pool by knowing how to price loans for risk and then being able to manage the risk in portfolios.

TCT’s Risk Based Loan Pricing and Credit Migration tools assure loan risk is managed and priced appropriately