Home equity loans

The new law adds rules, including counseling requirements, which would put severe constraints on originations of HEIs, an industry representative said.

More than 21% of reverse mortgage clients entered counseling with a deficit in their monthly budget last year, almost double the 12.2% of clients in 2024.

About 43% of Americans upgraded their homes last year, and 33% plan to remodel in the next year, according to a recent survey from Redfin.

A Colorado couple filed suit after realizing they might owe as much as $279,000 on a home equity investment contract used to obtain $88,000 in 2018.

The product preserves borrower's first mortgage, and its potentially lower mortgage rate, without requiring the new monthly payments of a traditional HELOC, FOA says.

HECM endorsements rose 16% in March to 2,117 loans, but monthly volumes remain near their slowest pace since last summer as proprietary reverse products quietly steal market share.

Borrower equity fell $78.8 billion, or 0.5%, year over year in Q4, according to Cotality's Home Equity Report. That's an average decrease of $8,500.

Agency MBS investors have had limited information about primary loans coexisting with home equity products, and may want to get more now, according to Experian.

Mutual of Omaha, Finance of America and Longbridge Financial rank at the top of HECM endorsements over the past 12 months, Reverse Market Insight reported.

The two organizations announced the Certified Home Equity Advisor credential, which will help financial professionals integrate home equity in retirement plans.

Point Digital Finance originated the underlying home equity contracts, composed of first lien (11.1%), primarily second-lien (82.9%) and third liens (5.81%) on residential properties.

Unison faces allegations it operates as an unlicensed mortgage lender with misleading marketing that drives homeowners into high-risk "no-debt" contracts.

Home equity investment platforms continue to attract dollars from the venture capital community but also face a proposed de facto ban in one state.

The reverse mortgage companies squeezed thousands of dollars out of aging homeowners through various illegal fees, according to a new class action suit.

The partnership also includes a $50 million equity investment in Finance of America, securing long-term alignment between the companies.

After home equity surged in 2023, average gains slowed last year before falling into negative territory over the past 12 months, Cotality said.

This year Point has funded more than $2 billion in home equity investments to more than 20,000 homeowners nationwide.

Home equity is becoming a data-driven asset that demands sharper valuation and analytics as lending options expand, according to Clear Capital's EVP of Strategy and Growth.

The company's latest funding announcement caps off a year of tailwinds that propelled growth for home equity investment platforms and related lending products.