HELOCs

Several lenders have introduced loan offerings this year to tap into surging property values, as refinances plunge by more than 80%.

But knowledge of HELOCs and HECMs is higher among Gen Z and millennials than boomers.

The new product is an extension of its FraudGuard offering for the first lien mortgage market.

Volumes generated for the home equity product increased by 28% over the past year, showing particular strength in Western markets.

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.

In the fourth quarter of 2021, home equity line of credit volume was up 31% from the same period the year before.

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.

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.”

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.

Refinancings more than doubled the year-ago amount and made up for the slowed purchase activity, according to Attom Data Solutions.