Home equity loans are popular with finance companies. Which one of the following statements about home equity loans is not correct?

Multiple Choice

A)In 2007-2008 there was a sharp increase in defaults among home equity borrowers.

B).Bad debt expenses on home equity loans are lower than on many other types of finance company loans.

C).Interest payments on home equity loans are not tax deductible.

D).If the borrower defaults on the home equity loan, the finance company can seize the house.

E). These loans allow customers to borrow on a line of credit secured with a second mortgage