Housing bubble-era loans principle starting to be due
‘Wave of disaster’ brewing in U.S. as more borrowers miss payments on housing bubble-era loans
"U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks.
The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.
More than US$221 billion of these loans at the largest banks will hit this mark over the next four years, about 40% of the home equity lines of credit now outstanding."
Subprime 2.0: Big Banks Exposed To $60 Bil In Bad Gov't Loans
"Bank of America has on its books $21.4 billion in toxic FHA mortgages 90 days or more past due, while Wells Fargo has $19 billion, according to American Banker. Citigroup has $4.2 billion and JPMorgan Chase has $3.3 billion. Also on their books: $8.6 billion of "non-accrual" delinquent loans on which FHA is no longer covering interest."
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