Home Equity People who get home equity loans are richer than the average household, their properties are worth more and they're borrowing at a substantially higher rate than they did in previous years.
Lenders are less inclined to make expensive appraisals or even drive-by appraisals.
This year, the percentage who made the loan decision based simply on information available at their desks rose to 26 percent from 18 percent last year. Full appraisals dropped from 24 percent to 17 percent. As in previous years, the most popular reason for home equity loans and lines of credit was to refinance and consolidate debt. A separate study found that while the nation's home ownership rate is at a record high 67 percent, the amount of equity people have in their houses is actually declining. In certain sub-groups of the economy, the news was better.