Can a consumer get a line of credit on a personal vehicle, then use the proceeds to finance repair of houses for his business? There is a feeling from one loan officer that it is against some FDIC reg. I can't find any guidance anywhere.

Any help would be appreciated.

I do not know about a rule or reg ont his one, but i do not understand why you would want to make a line available on a depreciating asset...guaranteed loss should he default on the loan.

Perhaps a cash out auto refiance might be a more appropriate option?

Wouldn't this be HMDA reportable?


We did a LOC on auto. One year 1/2 value of a Hummer. No big deal. Generally, th Hummer would not depreciate that much that soon. Also, I think our collection manager wanted a Hummer, on day...
Just kidding!

Wouldn't this be HMDA reportable?


We did a LOC on auto. One year 1/2 value of a Hummer. No big deal. Generally, th Hummer would not depreciate that much that soon. Also, I think our collection manager wanted a Hummer, one day...
Just kidding!

FWIW - I agree with bbsgrant.