Wells Fargo (WFC) stopped offering closed-end home equity loans in light of the upcoming TILA-RESPA Integrated Disclosure Rule taking effect on Oct. 3.
“Because closed-end loans were a small percentage of our overall home equity volume, we chose to focus on our line-of-credit offering and not to expend the resources required to retool our closed-end home equity disclosures to meet the new TRID regulations,” said Kelly Kockos, SVP, Home Equity Product Manager, Wells Fargo.
Instead, Wells Fargo decided to invest in other resources and made improvements to its home equity (non-TRID) line of credit product.
The enhanced HELOC product features:
- A lower line limit with a new minimum of $10,000 for all states. (NC is the exception at $12,000)
- Annual and account lifetime interest rate caps
- Principal reducing payments that help rebuild equity