Thrifts warned not to change terms of home equity loans

By Kevin G. Hall | McClatchy Newspapers

WASHINGTON — After a rash of consumer complaints, the federal agency charged with regulating savings and loan institutions issued guidance Tuesday warning lenders they could not arbitrarily change the terms of home equity loans.

The Office of Thrift Supervision (OTS) issued a six-page letter of guidance to the institutions, called thrifts, spelling out their obligations on home equity lines of credit, better known as HELOCs.