Friday, December 19, 2025
Three upcoming issuances of jumbo residential mortgage-backed securities all contain loans from United Wholesale Mortgage LLC, while affiliates of JPMorgan Chase & Co. play key roles in two of the deals. Subdued coupons on two transactions lack compensating credit risk factors.
Annual issuance of bonds backed by home-equity lines of credit has already doubled last year’s pace as newly closed securitizations showcase rapid paydown loan structures, HELOCs originated through the Figure Lending LLC platform and Achieve Home Loans credit lines carrying note rates that average 1.65 percentage points above prevailing coupons.
Two of three upcoming bond issuances featuring loans that don't meet Qualified Mortgage standards have lower coupons, one lacking compensating credit risk strengths, and a third with higher note rates to offset lower equity.
Hometap Equity Partners LLC’s latest securitization of home-equity investment contracts pairs meaningfully stronger borrower credit scores with slightly weaker combined loan-to-value ratios.
Nearly $19 billion in issuance of bonds backed by closed-end second mortgages this year include two year-end first-lien deals that feature a few junior liens and a Rocket Mortgage LLC transaction with higher note rates.
An upcoming securitization from the J.P. Morgan Mortgage Trust shelf features closed-end junior liens originated across several lenders that carry higher note rates.
Prepayment activity accelerated across home-equity lending products last month, though momentum proved far stronger among non-prime mortgages, while shifting delinquency dynamics revealed improving early-stage performance for home-equity products and mounting late-stage pressure within non-prime collateral.
As the rising cost of owning real estate increases anxiety among homeowners, more of them are seeking home-equity products -- with people younger than 29 seeing the most growth -- and further ascension is expected. Also escalating is the share of super-prime and subprime borrowers. HELOC Demand Bank executives operating...
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.
By MICHAEL MICHELETTI Equity-sharing products make up a rising proportion of home-equity originations, and further expansion appears likely as easier equity extraction, intensifying institutional investor demand, and the appeal of having no monthly payment continue to pull more homeowners toward...
