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.
-
Bank of America's first-mortgage production dropped almost 26% year-over-year in the fourth quarter of 2018, but it experienced a less severe 10% decline in home equity lending during the same period.
January 16
-
Late payments on mortgages are expected to keep dropping and credit is expected to remain strong next year, in part because housing prices remain healthy in most areas, according to TransUnion.
December 13
-
Intense competition among homebuyers remains as shown by the continual growth of median down payments, according to Attom Data Solutions.
December 13
-
Time and again, two former associates of President Trump deceived banks in connection with loan applications. Their wealth, proximity to power and willingness to tell big lies all appear to have helped them get away with brazen schemes.
December 12
-
Weakening prices from the most expensive metro areas caused the first decline in available equity since the market started recovering from the housing crisis, according to Black Knight.
December 10
-
Online personal lending pioneer Prosper is developing a home equity line of credit product that it will offer in partnership with banks. The embrace of traditional depositories marks a departure from fintech lenders that typically seek to disrupt and displace legacy institutions.
November 14
-
Ellie Mae is tackling home equity lines of credit loans with its latest Encompass Digital Mortgage Solution update as signs point to a surge in home equity borrowing.
October 22
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.
