Wells Fargo Abruptly Closes Lines of Credit - The End Is Near

[Account Closed]

When banks start restricting credit, they are not confident about people's ability to repay. That means the use of Lines of Credit, HELOCS and other lending for real estate investing will dry up too.

Wells Unexpectedly Shuts All Existing Personal Lines Of Credit, Hinting US Economy On The Edge

Customers have been given a 60-day notice that their accounts will be shuttered, and remaining balances will require regular minimum payments, according to the statement.

[Reese C.]

None of us have a crystal ball. However, I am not sure if the cutback of unsecured debt is a 1:1 translation of restrictions to secured debt. For the time being, there still is a housing crunch, pushing property values upwards, allowing the banks to have a more secure position.

Also, this may be more of a factor of the low interest rates making the products less profitable. Just my thoughts.