Home Equity Lending News

Federal Reserve data indicate that corporate credit spreads have become more narrow since the pandemic, which bodes well for home-equity borrowers and lenders. (subscription) https://lnkd.in/gMfaxjFv

The latest figures are in, and ATTOM reported that the number of new HELOCs opened by homeowners escalated on a both a month-over-month basis and a year-over-year basis. https://lnkd.in/gEFFs-yF

The capital markets section of the Q3 Home Equity Study indicated issuance of home-equity products has been stronger this year than at any time since the financial crisis. Third-quarter issuance soared from a year ago, with closed-end second lien activity leading the way. Issuance of transactions containing HEI contracts hasn’t changed much, however, though cumulative issuance is strong. Ratings upgrades have been made to pre-crisis home-equity RMBS. A new fund was launched to connect private second-lien investors with homeowners. Two capital raise transactions with HEI originators were identified. Meanwhile, the results of the presidential election are likely to have a negative impact on Freddie Mac’s CES pilot. (subscription) https://lnkd.in/gChYvhX3

Thanks solely to smaller institutions, Federal Reserve Board data indicate banks have grown their HELOC portfolios over the past year by $6 billion — though the amount falls well short of year-over-year HELOC growth at credit unions. https://lnkd.in/gMPxjj7H

A fourth issuance during 2024 of home-equity RMBS has been disclosed by Saluda Grade, which said it finished the year strong. The deal contains CES loans and HELOCs. (subscription) https://lnkd.in/gy5pCyei

U.S. mortgage loan originators pushed up quarterly home-improvement lending production to the highest level since 2022, the Conference of State Bank Supervisors (CSBS) reported. Remodeling activity, however, is expected to slow down. https://lnkd.in/g6te5y62

Federal regulators are raising the threshold for loans considered to be high-priced. Seven members of Congress have opened an investigation into the recently failed EasyKnock Inc. Mark H. of HomeEquity.Exchange (HEx) writes that a recent decision by the Supreme Court has positive ramifications for stakeholders in the business of home-equity investment contracts. https://lnkd.in/g93k8gmj

KBRA is rating a deal from A&D Mortgage LLC with some seconds. Vista Point Financial Holdings announced the closing of a CES transaction. Vista's William Ashmore said, "Our origination channel partners look to us for streamlined CES execution." Fitch Ratings said a deal sponsored by FirstKey Mortgage, LLC contains some second-lien loans. (subscription) https://lnkd.in/gczihyC8

A growing share of borrowers on Newfi Lending's shared-appreciation product are utilizing funds for business. Newfi's Pat Doyle said, "this product provides unique access to capital." HEI originator Splitero added an equity-rich state to its geography. Splitero's Michael Gifford said, “By providing homeowners with a lump-sum of cash in exchange for a share of their home’s future value, Splitero enables homeowners to use their home equity to better their lives.” JASON RUEDY is all about home-equity lines of credit right now. https://lnkd.in/dk_WYahw

The country’s credit unions have added more than $25 billion in home-equity assets to their balance sheets over the past year, according to America's Credit Unions. Much of the growth came from HELOCs — far exceeding their banking counterparts. Average interest rates on credit union HELOCs dipped. https://lnkd.in/ebFrw2vN