Home Equity Lending News

Figure’s rise to become the largest non-bank HELOC originator and issuer was aided by CoreLogic. Blend launched new tools aimed at boosting home-equity lenders’ turnaround times and enhancing the customer experience. @Blend's Srinivasan Venkatramani said that they don't make borrowers manually complete lengthy forms. HELOC verification provider Xactus unveiled a new intelligent verification platform. Xactus' Shelley Leonard said the company has reached a pivotal moment. https://lnkd.in/gwXGZwah

Fitch Ratings reported a securitization of CES loans originated by Rocket has closed, and the size of the transaction has expanded by nearly $100 mil from initial expectations. An upcoming predominantly first-lien RMBS issuance includes more than $24 mil in CES loans originated by A&D Mortgage LLC. Deal is being rated by KBRA. Freddie Mac has reportedly begun buying CES mortgages, though the volume remains too low for securitization. (subscription) https://lnkd.in/gvB-hJmb

A new joint venture revealed between Figure and Sixth Street?intends to generate over $2 billion in liquidity for a marketplace that will initially focus on HELOCs. Figure's Mike Cagney said, “Ultimately we’ll challenge the GSEs with this model." Figure's Todd Stevens said the joint venture "puts Figure's private credit platform on a trajectory that is ultimately intended to lower costs for lenders and borrowers." (subscription) https://lnkd.in/gcyif44u

An upcoming issuance of RMBS containing HELOCS originated by United Wholesale Mortgage, Better and?loanDepot is set to close this week. The deal has the lowest HELOC WAC since last summer. KBRA AND Fitch Ratings are rating the deal. (subscription) https://lnkd.in/gpAsbtby

A TV commercial from Unlock Technologies aired during the Super Bowl. TransUnion released retail media research findings. TransUnion's Mark Rose said, "Brands face challenges with targeting and measurement consistency across retailers." ServiceMac, LLC was recognized for an award. ServiceMac's Robert Caruso said, "We’ve been focused on helping servicers provide superior customer service." https://lnkd.in/gD4eqdXp

Job openings at Figure include chief compliance officer and a capital markets position. Both jobs offer annual pay that exceeds or can exceed $200,000. Figure's Jeff Cavros highlighted 2 other openings. Benefits for an open servicing director position at Point and 3 available jobs at Hometap include unlimited paid time off. https://lnkd.in/gEnpDpHw

U.S. banking institutions added more than $10 billion in HELOCs to their collective balance sheets last year, data from the Federal Deposit Insurance Corporation (FDIC) indicate. HELOC delinquency has held steady. Nearly 90 banks were absorbed by mergers during 2024. https://lnkd.in/gxfsiuMh

A unit of Nomura made a strategic investment in Nada Inc. Nomura has been an active player in HEI issuance, and the deal is expected to help Nada accelerate its business. Nomura's Neeraj Hora said, "We invest capital and also support the business development objectives of startups." Nada's John R Green said, "This isn’t just capital — it’s a catalyst for growth." Nada's Tore C. Steen said, "In 2024, we experienced significant growth in our partner network." (subscription) https://lnkd.in/gVSVPDNh

In the ever-evolving world of home-equity finance, originators and investors face a complex decision: whether to offer or invest in HEI contracts versus traditional HELOCs. While both options tap into the value homeowners have built in their properties, they differ significantly in terms of yields, servicing, and regulatory oversight. Moreover, a patchwork of state regulations -- coupled with evolving federal de-regulatory strategies -- adds another layer of uncertainty to the market. (subscription) https://lnkd.in/gkmDrSpf

HELOCs originated in the final quarter of 2024 moved higher from a year previous, driving annual volume past 1 million units for $200 billion and leading to a year-over-year gain, based on data from ATTOM. Recent loan application activity reported by the Consumer Bankers Association suggests the trend will continue into this year. https://lnkd.in/dG-xPfGU