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.

Refinance

Mortgage volume hits 11-year high in 2Q 2020

With mortgage rates tumbling near 3% in the second quarter, refinance originations spiked 400% in some housing markets, pushing overall volume to its highest point since 2009, according to Attom Data Solutions.

By Paul Centopani
Reporter

August 20
Mortgages

Coronavirus made homeowners realize they don't like their houses

Home-renovation loans to add features such as offices and pools could be one source of lending as credit unions struggle with overall sluggish loan demand.

By Jackie Stewart
Executive Editor

July 24
CFPB News & Analysis

CFPB proposes rule to facilitate Libor transition for creditors

The Consumer Financial Protection Bureau seeks to address challenged posed by the sunset of the London interbank offered rate at the end of 2021.

By Hannah Lang
Reporter

June 4
Refinance

Mortgage refinance volume is up 105% from a year ago: Report

With mortgage rates reaching all-time lows in the opening quarter, refinance originations were up in 97% of housing markets during 1Q, according to Attom Data Solutions.

By Paul Centopani
Reporter

May 21
Wells Fargo

Wells Fargo stops accepting home equity credit line applications

Wells Fargo will temporarily stop accepting applications for home equity lines of credit, following a similar move by rival JPMorgan Chase.

April 30
Home equity loans

How the coronavirus is changing the HELOC lending market

Is JPMorgan Chase an outlier or the canary in the coal mine when it comes to home equity lending during the coronavirus spread?

By Brad Finkelstein
Originations Editor

April 28
JPMorgan Chase

JPMorgan halts home equity loans due to coronavirus

The nation's largest bank is temporarily reducing its exposure to the mortgage market amid rising unemployment and estimates that home prices could drop by 10%.

By Kate Berry
Reporter

April 16

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.

Live Updates

Resources

The latest American Banker research and discussion on Tariffs

Julio Pernía

April 20
Akash Agarwal

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Sara Perez

April 20

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.