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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Volumes generated for the home equity product increased by 28% over the past year, showing particular strength in Western markets.
June 10
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Non-depositories historically haven't been big originators of home equity lines of credit, but fintechs that offer the easily automated countercyclical products are reporting growth.
May 26
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In the fourth quarter of 2021, home equity line of credit volume was up 31% from the same period the year before.
May 13
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Forecasting that it will not turn a profit in the 2022 fiscal year, the company plans to make job cuts, suspend dividends and introduce new products.
May 10
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While first-quarter profits were up considerably, CEO Michael Nierenberg said the company will offer more products to counter market conditions that are “only going to get worse.”
May 3
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Purchase activity dominated the period and experienced the most growth while refinances cooled off and home equity lines of credit made a comeback, according to Attom Data Solutions.
August 19
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Refinancings more than doubled the year-ago amount and made up for the slowed purchase activity, according to Attom Data Solutions.
June 3
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.
