Saturday, June 14, 2025
An upcoming residential mortgage-backed securities transaction from Rocket Mortgage LLC featuring closed-end second liens that have credit metrics consistent with the second-quarter average for all CES deals exhibits a weighted-average coupon that is considerably higher than the quarterly average. The deal pushes this year's home-equity issuance above $10 billion.
A transaction for more than $10 million involved the acquisition of home-equity investment contracts by Nada Inc.'s real estate investment fund as part of a strategy to scale and diversify its growing portfolio. Nada reported that its own internal rate of return is 17%.
Home-equity investment securitizations are poised to surpass last year’s issuance levels, supported by a wave of private transactions and tighter spreads. Yet investor caution persists as concerns linger around cash flow timing, deal structure and limited performance history. Market participants are looking to state attorneys general for regulatory actions.
By COVIANCE With tens of trillions of dollars in available equity and low credit risk, home-equity lenders need to seize the opportunity and align their processes to meet borrower expectations in real time. This means operating with the agility, speed and customer-centric thinking of technology companies while adopting a mindset that...
Completion of a blockchain-based home-equity line-of-credit transaction marked a pivotal achievement for both the issuer and the ratings agency involved. Closed-end second liens represented a small share of a primarily first-lien issuance. Residential mortgage-backed securities featuring short-term fix-and-flip financing originated by Anchor Loans LP closed this week.
As many traditional home lenders avoid home-equity lending, an interest-only home-equity line of credit has been launched by a provider of reverse mortgages. The new offering reportedly includes cost-conscious features seldom found in standard bank HELOCs.
Thirty-day delinquency on securitized home-equity products experienced a significant decline of 70 basis points over the past year, while bank performance was mostly flat. The rate of seriously delinquent payments on home-equity lines of credit turned higher in the final quarter but finished lower than a year prior.
Home-equity players are making strategic personnel moves, with a credit union that is a top-50 originator of home-equity lines of credit appointing a new chief marketing officer, a provider of home-equity investment contracts hiring a new head of product and seeking a product manager, and a technology provider also searching...
By COVIANCE With tens of trillions of dollars in available equity and low credit risk, home-equity lenders need to seize the opportunity and align their processes to meet borrower expectations in real time. This means operating with the agility, speed and customer-centric thinking of technology companies while adopting a mindset that prioritizes real-time responsiveness, data-driven decision-making and continuous borrower experience optimization.
By TOM DAVIS Home-equity lenders can find untapped potential in serving real estate investors who are sidelined from traditional home-equity lending products due to non-standard income profiles. Those who don't take advantage of opportunities like this risk being left behind.
