<story><title>Wells Fargo temporarily suspending applications for home-equity lines of credit</title><url>https://www.wellsfargo.com/equity/line-of-credit-details/</url></story><parent_chain><item><author>rcpt</author><text>We just printed $6T but the amount of land didn&amp;#x27;t change. Why would land prices go down?</text></item><item><author>amiga_500</author><text>They are preparing for a drop in land prices.&lt;p&gt;Also presumably anyone applying for a HELOC right now is doing so to tide them over, and banks reason that many will just burn through the debt and then default with less equity.</text></item><item><author>toomuchtodo</author><text>This is not unexpected. JPMC halted home equity origination a week ago. This debt is kept on a bank’s books (and not government backed like mortgages), they’re limiting exposure during macroeconomic distress.&lt;p&gt;Do a cash out refi if you need to tap your equity.</text></item></parent_chain><comment><author>toomuchtodo</author><text>Land prices are tied to wages. Wages and employment goes down, value of land goes down. Unless the Fed starts buying up land directly, or using REITs.</text></comment>
<story><title>Wells Fargo temporarily suspending applications for home-equity lines of credit</title><url>https://www.wellsfargo.com/equity/line-of-credit-details/</url></story><parent_chain><item><author>rcpt</author><text>We just printed $6T but the amount of land didn&amp;#x27;t change. Why would land prices go down?</text></item><item><author>amiga_500</author><text>They are preparing for a drop in land prices.&lt;p&gt;Also presumably anyone applying for a HELOC right now is doing so to tide them over, and banks reason that many will just burn through the debt and then default with less equity.</text></item><item><author>toomuchtodo</author><text>This is not unexpected. JPMC halted home equity origination a week ago. This debt is kept on a bank’s books (and not government backed like mortgages), they’re limiting exposure during macroeconomic distress.&lt;p&gt;Do a cash out refi if you need to tap your equity.</text></item></parent_chain><comment><author>lotsofpulp</author><text>It depends how much of that $6T lands in the hands of people buying land (in the near future).</text></comment>