B of A: Taking out equity “still smart”

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The New York Times reports something that commenters here have also been pointing out: Despite a once-in-a-generation housing meltdown, mortgage companies continue to ‘pump out upbeat advertisements.’

‘Countrywide Financial brags in its ads that ‘No one can do what Countrywide can’ and that ‘Countrywide can show you the way home.’ Wachovia ads feature an ‘Approved’ stamp prominently at the top, and Bank of America says, ‘Homeownership is the best medicine,’ the Times reports.

More: ‘... Bank of America still says in online ads that people should refinance to ‘get the cash you need, when you need it.’ Many people who are having problems with their mortgage payments are those who took cash out of their homes as their appraisals rose. When asked about the cash-out ad, Joe Goode, a spokesman for Bank of America, said homeowners still have considerable equity in their homes. ‘Taking equity out of one’s home is still a smart way for consumers to finance things like home improvements,’ he said.

Thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo credit: AP