The Everyday Banker

The Wall Street Journal (WSJ) reported that “Tapping Home Equity Becomes Tougher for Many Americans.”   The article ran in the Friday, June 19^th issue and it was one of interest to our Consumer Team at State Bank Financial.   The WSJ reported that many lenders are getting stricter, and that even some of the nation’s largest banks have temporarily stopped accepting applications for the popular Home Equity Line of Credit, often referred to as a HELOC.  According to the story, some of this was related to and stems back to the 2008 crisis, and some is related to out-of-work borrowers, new lofty lending requirements and in some case the inability to find an appraiser due to the pandemic and stay-at-home orders in certain section of the country. 

Either way for some Americans that have seen equity gains in their home and had planned on turning to that equity for various reasons, they are unable to get the money they need, and it has left them scrambling.

Jill Hamilton, Director of Retail, and Senior Vice President, said, “I think for our customers the fact that we know them, and they know us, really is beneficial.”  Hamilton went on to say that there are several factors that get looked at when applying for a HELOC and that a local connection helps.  “For many of our customers a HELOC provides access to money for home improvements, new additions, weddings or even automobiles,” said Hamilton.

Hamilton, who has been involved with Consumer Banking for 25 + years, went on to say that she and her team are seeing strong interest from consumers in western and central Wisconsin, as well as southeastern, Minnesota for the HELOC product.  “I think the flexibility of it is a big  appeal, but I also think as families re-think vacations, maybe moving about the country via motorhomes and recreational vehicles, as well as making a home they are spending more time in more livable, larger or better for home offices, it is all driving an uptick for the HELOC.”

Hamilton also indicated that at State Bank Financial they are still doing HELOCS and did not see that changing. “We have the capacity, and we know for many people it’s an effective way to get the money you need to do the things you want,” she said, “As long as it makes sound financial sense for the customer and the bank, we will keep being a resource for people who are looking for HELOCS.”

To learn more about HELOC’s visiting the State Bank Financial website or contact them at:

[email protected] or call: 1.800.880.7151