JPMorgan and the Concentration of Risk [View article]
HE Loans & Lines are barely 20% writedown. This is insane.
For example, if you purchased a house in 2003 at $300k and its value went up to $400k and you took out a $50k line of credit life was good. But when that home dropped back down to $300k you now have a HELOC that has no equity behind it.
These HELOCs are not percentage writedowns, they are 100% writedowns on many of them. To assume only 20% will be written down is nuts.
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HE Loans & Lines are barely 20% writedown. This is insane.
Sep 27 17:38 pm
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All Comments by The Realist »JPMorgan and the Concentration of Risk [View article]
For example, if you purchased a house in 2003 at $300k and its value went up to $400k and you took out a $50k line of credit life was good. But when that home dropped back down to $300k you now have a HELOC that has no equity behind it.
These HELOCs are not percentage writedowns, they are 100% writedowns on many of them. To assume only 20% will be written down is nuts.