Friday, October 31, 2025
A mild month-over-month decline in home-equity securitization activity contrasted sharply with a double-digit year-over-year jump exceeding $10 billion so far in 2025, as year-to-date closed-end transactions nearly doubled from 2024 same-period levels.
Loans originated by Guaranteed Rate Inc., Rocket Mortgage LLC and United Wholesale Mortgage LLC are included in four jumbo residential mortgage-backed securities transactions being issued for nearly $2 billion.
Home-equity lines of credit originated by Spring EQ LLC are being prepared for securitization in a deal that will lift 2025 issuance of open-end residential mortgage-backed securities past the volume for all of last year.
In its first closed-end second securitization as a subsidiary of Rocket Companies, Mr. Cooper has assembled a pool with lower credit risk to match a lower coupon.
Panelists at a recent second-lien session drew sharp contrasts between the disciplined structure of today’s securitized products and the loose practices of pre-crisis vintages, exploring the drivers of strong current demand and the evolving dynamics shaping the market.
A deal was struck for The Huntington National Bank, one of the largest originators of home-equity lines of credit in the country, to acquire a bank with nearly 400 locations across the South that also originates open-end home loans.
As home equity continues to increase, homeowners are considering how to access it and how they can use it. Expanding home-equity originations are contributing to robust non-agency securitizations, and growth might be stronger if homeowners better understood available options. Meanwhile, early signs of strain appeared in home-equity and non-qualified-mortgage performance.
Three large upcoming residential mortgage-backed securities transactions containing non-Qualified Mortgages are set to lift quarterly issuance beyond the most-recent peak as sector credit risk edges modestly higher.
By COVIANCE Community home-equity lenders have a timely opportunity—but seizing it requires a more strategic approach. Success will come from moving beyond mass marketing, delivering personalized messaging, and simplifying the borrower experience.
The home equity lending industry is facing a pivotal moment. At a time when U.S. homeowners are sitting on close to $35 trillion in equity and struggling to pay off over $1 trillion in credit card debt, home-equity lending processes...
