How Everyone Came To Have A Second Mortgage

August 24, 2010

A quarter-century ago, only someone in desperate need of cash would take a second mortgage. Then Congress changed the tax rules, and today, millions of Americans have “home equity” lines. Banks are losing $30 billion a year on these products, and untold thousands of families stand to lose their homes to foreclosure. Is this another example of a law’s unexpected consequences? Nope. This outgrowth of the Tax Reform Act of …

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