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.
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Homeowners can tap into more home equity than ever before, but deciding between a home equity line of credit and cash out refinance mortgage has gotten more complicated following recently passed tax reforms.
January 8
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They aren't creating new products, but some lenders are advising cash-strapped customers in high-tax states to tap home equity or other credit lines to prepay property taxes before the new tax law kicks in.
December 28
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Any decline in home equity balances could be offset by higher demand for other types of consumer loans. The worry is that only borrowers with blemished credit will take out home equity loans, increasing banks’ risk.
December 26
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Homeowners with mortgages have collectively seen their equity increase 11.8% year-over-year in the third quarter, according to CoreLogic.
December 7
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The vast majority of consumers with a home equity line of credit said they are considering using it to pay for planned home renovations this winter.
December 6
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There were 1.4 million fewer properties seriously underwater in the third quarter, marking the largest year-over-year drop since the second quarter of 2015, according to Attom Data Solutions.
November 16
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Recent research into customer preferences regarding home equity lending reveals that banks need to better engage with their customers to understand their needs and expectations, and then guide them to optimized HELOC product offerings that precisely meet their needs.
November 15
Nomis Solutions
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.
