Home Equity Frenzy Was a Bank Ad Come True

New York Times (08/15/08) P. A1; Story, Louise
Banks have spent billions of dollars in advertising to change the language and image of borrowing against a home, and home equity loans are universally accepted today. The product used to be called a second mortgage, and it was viewed as the last option for prospective borrowers who were financially distressed. Many experts believe the industry's ad campaigns, which started in the late 1970s and made debt accumulation seem more socially acceptable, encouraged borrowers to dig themselves deeper into debt. Although lenders obtain higher returns from home equity loans than other products, the number of Americans who own their home outright continues to decline; and delinquent borrowers owe more than $10 billion on the loans, often on top of their first mortgages.