Home Equity Lines of Credit (HELOCs)

Home Equity Lines of Credit (HELOCs) are experiencing a resurgence due to both homeowners having trillions in tappable equity as well as many being locked into low-rate mortgages. Borrowers are seeking liquidity without refinancing. Banks and independent mortgage lenders are responding to this by expanding HELOC products, increasing limits, and embracing new technology and digitization. Current areas of focusing include securitizations gaining momentum, rising fraud threats, and intensifying competition is intensifying. HELOCs have re-emerged as a strategic growth lever for mortgage professionals.

RMBS

FIGRE issues HELOCs backed by $242.3 million in contracts

After the end of the draw periods that range from two to five years, the amortization begins, during which borrowers have a repayment period ranging from three to 25 years.

By Donna M. Mitchell

December 11
Loan Think Appraising the evolution of home equity usage

Home equity is becoming a data-driven asset that demands sharper valuation and analytics as lending options expand, according to Clear Capital's EVP of Strategy and Growth.

December 10

Kenon Chen

Clear Capital
Home equity loans

From HELOCs to blockchain: home equity moves forward

Bank statement loans, a home equity credit card and a blockchain investment product are among the new offerings designed to reach an $11 trillion market.

By Brad Finkelstein

December 5
Loan Think The second-lien push that won't quite catch

Billions in home equity sit untapped as second-lien loans struggle to gain traction, writes the chairman of Whalen Global Advisors.

December 2

Christopher Whalen

Whalen Global Advisors LLC
Originations

Better launches HELOC, CES wholesale channel

The lender, which reported over $200 million in home equity line of credit volume in the recent quarter, suggests the business can deliver massive scale.

By Andrew Martinez

October 21
HELOANs

Better, Finance of America team up on HELOANs, HELOCs

The largely direct-to-consumer lender will also offer reverse mortgage loans in the latest dealing between publicly traded industry players.

By Andrew Martinez

October 14
Originations

More home equity, more lending options for lenders

Different markets for home equity products emerge, plus technology changes make it easier and quicker for traditional offerings to reach consumers.

By Brad Finkelstein

September 30

Banks on deck for quarterly earnings amid tariffs mayhem: Live coverage

The first three months of the year coincide with the start of President Donald Trump's second term in office. Investors are likely to be more interested in banks' outlooks amid swings in tariff policy than the first-quarter results.

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Frequently Asked Questions:

What is driving the increased demand for HELOCs in 2025?

Homeowners want to access equity without sacrificing their existing rates due to mortgage rates remaining elevated. This scenario has increased demand for HELOCs, rebounding to pre-2008 levels. Lenders like Achieve Home Loans securitizing $210.9 million in HELOCs to meet funding needs.

How are banks and other institutions competing in the HELOC space?

Banks have traditionally offered advantages related to portfolio and pricing, while independent mortgage banks offer speed, flexibility, and digital access. Banks vs IMBs: who wins the HELOC war explores how originators are differentiating and how quickly dynamics are shifting.

What are the main fraud risks that HELOC lenders are currently facing?

As HELOC originations become more digital, new vulnerabilities are emerging. Consumers are increasingly at risk of fraud from identity theft, fake occupancy claims, and elder-targeted scam.

What does a real-world HELOC fraud scam look like?

As more lenders enter the second lien market, a scam involving an identity thief who stole $2 million through HELOC fraud highlights the necessity of stricter borrower verification and title controls.

In what ways is the mortgage industry updating HELOC closings and documentation?

The Mortgage Industry guidelines Maintenance Organization (MISMO) released eHELOC SMART Doc standards to make digital closings more similar across systems and investors and to make things go more smoothly.

How is the secondary market responding to rising HELOC volumes?

Investor interest is increasing with HELOC deals now drawing institutional capital at scale, especially among those using emerging technology. Figure’s AAA-rated HELOC securitization’s blockchain-based home-equity line of credit securitization was the first of to receive a AAA rating from a major rating agency.