Home equity loans represent both a business opportunity and a risk for national banks. Home equity loan products include open-end equity lines of credit and closed-end home equity loans. Lenders must have policies and procedures in place to effectively manage the credit risks associated with these loan products.
Follow the links on this page for regulatory resources related to home equity products.
Credit Risk Management Guidance for Home Equity Lending (Interagency Guidance, May 2005)
Covers credit risk management practices for home equity lending, including open-end home equity lines of credit and closed-end home equity loans
Home Equity Lending: Credit Risk Management Practices (OCC 2005-22, May 2005), Addendum to OCC 2005-22 (OCC 2006-43, October 2006), Interagency Statement
Covers development, marketing, origination, underwriting, third-party origination, management, operations, and portfolio classifications