Wednesday, April 30, 2025
Monthly securitizations of home-equity lines of credit plummeted by almost three-quarters on a month-over-month basis, while issuance of closed-end second residential mortgage-backed securities sank by more than $1 billion. Despite the monthly setback, year-to-date issuance has still surged more than 80 percent above last year’s pace. No home-equity investment bonds were rated during the month.
Executive changes across home-equity finance have recently been concentrated in roles tied to technology or home-equity investments, with some also reflecting capital markets expansion. Salaries listed for some of the open jobs range from $90,000 to $180,000.
Rocket Mortgage LLC expanded the size of its latest closed-end second lien residential mortgage-backed securities transaction by a substantial $100 million above original expectations, likely reflecting strong demand for the offering. Meantime, a small number of junior liens surfaced in largely first-lien deals from other issuers.
Figure Lending LLC is issuing a residential mortgage-backed securities transaction in a dual-stage structure composed of home-equity lines of credit with varied risk characteristics and a lower weighted-average coupon than peer deals issued in 2025.
Citizens Bank posted the steepest drop in home-equity yields among top lenders last quarter, deepening a broader decline that leaves the gap between bank-held portfolio returns and securitized loan note rates at nearly 3 percentage points.
Lingering uncertainty around international trade is weighing on sentiment across Federal Reserve districts, yet open-end home-equity lending continues to show resilience, according to the central bank’s latest assessment of regional conditions.
Quarterly second mortgage production at PennyMac Financial Services Inc. leapt by 72 percent from a year earlier, and some measures suggest the momentum is carrying into the current quarter. The originator is actively integrating advanced artificial intelligence technologies into its operations.
A forthcoming residential mortgage-backed securities transaction, composed primarily of home-equity lines of credit with a concentration in the Golden State and originated by Homebridge Financial Services Inc., carries a notably elevated weighted-average coupon relative to other HELOC issuances in 2025. While credit scores among the underlying loans fall short of...
By COVIANCE Today’s economic challenges -- soaring mortgage rates, auto tariffs, and persistent inflation -- are reshaping consumer behavior. With $11 trillion in tappable equity available to U.S. homeowners and HELOC originations projected to grow 15-20% in 2025, home-equity lending has emerged as a financial lifeline for borrowers and a critical growth avenue for lenders.
By A.J. DHALIWAL, MOORARI SHAH and MEHUL MADIA Home-equity investment products, often referred to as shared appreciation agreements, have garnered significant attention in recent years.
