Morgan Stanley to freeze part of the home equity loan

The second-largest U.S. brokerage Morgan Stanley to thousands of customers a few days ago issued a circular to freeze their home-equity loans. The so-called home equity loans, credit refers to loans to applicants who approved the House or home as collateral to the bank to apply for a "legitimate purpose" (such as car buyers, individuals working capital) in a single cycle of loans or lines of the individual Credit business. Morgan Stanley spokesman said the company's regular customers of the value of assets and risk assessment, as part of the customer to change the value of the assets, Morgan Stanley has recently been informed of these customers on their home equity credit line to change the situation. Bloomberg News also revealed that the second-largest U.S. bank JP Morgan Chase Bank since March this year, has 150,000 customers on the home equity line of credit for the change, both of which reduced the amount of loans, including loans to be suspended. U.S. house prices fell lead to a substantial shrinking asset buyers, mortgage default rate continues to rise. U.S. real estate research firm RealtyTrac's statistics show that in June the U.S. buyers who were unable to repay the loss of housing and the right to redeem the number of cases than the 53% increase over the same period last year.