Home Equity Lending News

Q2 Home Equity Issuance Skyrockets, Yields Above 10%

Updated July 3, 2023, 8:31 a.m. Pacific


The dollar volume of home-equity transactions that were securitized during the second quarter nearly tripled compared to the preceding three-month period. The average yield on deals closed so far this year is well north of 10 percent.

From April 1 through June 30, six home-equity securitizations for $1.308 billion were identified in a HELN analysis of rated residential mortgage-backed securities that closed during the period.

Aggregate loan count on second-quarter transactions is estimated by HELN at 16,087 units.

Only two home-equity backed RMBS for $0.437 billion with an estimated 5,217 loans that closed during the first quarter were tracked by HELN.

For the entire second half of last year,  HELN identified just three transactions for $0.637 billion that were securitized.

The weighted-average gross coupon on the product securitized during the entire first half of this year came to 10.54 percent based on an analysis of four transactions where the yield was reported.

Second-quarter transactions included:

Among originators of loans included in the second-quarter home-equity securitizations were Figure Lending, loanDepot, Rocket Mortgage LLC, Spring EQ and United Wholesale Mortgage.

view full tables of RMBS transactions

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