Home equity loans and HELOCs

Home equity loans and lines of credit are playing a growing role in the mortgage industry as borrowers look to tap into rising home values amid high interest rates. These products introduce new considerations that can impact lending strategies, portfolio performance, and risk management for financial institutions. As a mortgage professional, it's critical to understand how evolving consumer behavior, the rate environment and broader economic conditions are shaping demand for home equity products. Explore our in-depth coverage, including news, expert analysis, and market research, to stay informed on the latest developments and insights around home equity lending.

Loan Think When will non-QM loans and HELOCs take off?

The shift to nonbank lenders will put the breaks on non-qualified mortgage and home equity line of credit origination growth.

May 20

Christopher Whalen

Whalen Global Advisors LLC
Layoffs

Reverse mortgage lender Live Well Financial laying off 103 workers

Live Well Financial, a reverse and traditional mortgage lender that abruptly stopped originating on May 3, will lay off 103 employees, according to a Virginia Employment Commission filing.

By Bonnie Sinnock

May 7
Earnings

Lower rates boost BofA mortgage lending, but cut home equity

Lower interest rates increased Bank of America's first-quarter residential mortgage volume by 21% over the previous year, while home equity dropped by 25%.

By Brad Finkelstein

April 16
Refinance

Refi potential nearly doubled in a single week, home equity not so much

The number of homeowners likely to qualify for a refinance nearly doubled in a single week following the largest mortgage rate decline since the housing bubble burst, according to Black Knight.

By Elina Tarkazikis

April 1
Home equity loans

Home equity alternative Point raises $122M in new funding

Point, which provides an alternative to traditional home equity lending products, has raised $122 million in new capital from eight investors to expand its reach.

By Brad Finkelstein

March 20
Credit scores

Home equity expands, home equity credit not so much

Home equity is at an all-time high, but consumers aren't taking advantage of this financing option, according to LendingTree.

By Elina Tarkazikis

March 19
Digital mortgages

All digital HELOC lenders have lower customer satisfaction: J.D. Power

Having an all-digital process results in lower customer satisfaction for home equity line of credit providers than an all in-person or a mix of methods, a J.D. Power survey found.

By Brad Finkelstein

March 14

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

Multimedia

Resources

The latest American Banker research and discussion on Tariffs

Tariffs, immigration fears stoke housing cost debate

By Jarrod Barry

June 16
- Politics and policy
- HUD
NFHA: HUD using flawed data to justify funding cuts

By Jarrod Barry

June 16
Jervis DiCicco

June 15

Frequently Asked Questions:

What proactive measures are banks using to mitigate the impact of tariffs?

Trade finance services and corporate client advisory on supply chain adjustments allow banks to lessen the impact of tariffs. For example, Citizens Financial’s trade finance unit helped companies accelerate inventory purchases and use letters of credit to secure transactions ahead of new duties. Many banks are also using hedging strategies and leveraging deregulation windfalls to address higher costs.

How should banks recalibrate interest rate forecasting and monetary policy expectations amid tariff-induced economic disruptions?

Banks can incorporate tariff-driven inflation and growth scenarios into their interest rate models and maintain flexibility in policy outlooks. Institutions are closely tracking Federal Reserve signals in this volatile trade environment, as tariffs can both slow growth and raise prices. This can put the Fed “in a quandary,” requiring banks to update their asset-liability strategies to account for potential rate cuts or even hikes.

What advanced compliance and technology strategies are banks using to optimize cross-border payments and trade finance?

Banks are deploying sophisticated payment analytics and real-time treasury tools to manage cross-border flows amid shifting tariffs. BNY Mellon, for example, notes clients are using predictive cash-flow analytics to navigate uncertainty. Institutions can also improve compliance automation by integrating systems for instant sanctions/tariff list updates. This can ensure cross-border transactions meet changing trade rules.

What are best practices in risk modeling and scenario analysis for banks to navigate tariff-related risks?

Leading banks can look to bolster scenario analysis capabilities to account for tariff shocks. Banks can run stress tests on portfolios with heavy exposure to tariff-impacted sectors such as automotive manufacturing and agriculture as well as model multiple trade war outcomes. Analysts also advise enhancing “playbooks” for varied economic scenarios and properly pricing new loans for added risk. For example, this could mean using forward-looking models to adjust credit loss provisions and capital plans.

How can banks prepare for long-term industry trends driven by tariffs and trade uncertainty?

Banks can prepare through incorporating trade policy shifts into growth investments as well as technology investments. This includes diversifying supply chain financing, investing in local manufacturing projects, and strengthening presence in resilient markets. Industry leaders like JPMorgan’s Jamie Dimon are watching the “restructuring of trade and tariffs” as an inflationary force shaping future strategy.

Which banking operational units should banks prioritize for tariff exposure assessments?

Commercial lending divisions, including those that finance manufacturers, agriculture, and exporters are a priority. These units will most directly face clients impacted by tariffs. Other units to review exposure risks include specialized trade finance and supply chain finance.

How is artificial intelligence (AI) helping banks address tariff-related challenges?

AI enables banks to respond faster and more efficiently to tariffs. Machine learning models can recalibrate pricing and supply chain finance strategies as trade policies shift. Generative AI tools can shorten the time needed to update payment systems for new tariff rules update payment systems for new tariff rules. AI-enabled platforms can make compliance a proactive function by automating real-time screening of transactions against changing trade restrictions.