By SAM GARCIA Even though challenges remain for junior lien lending, issuance and servicing, some areas of the sector are very promising, according to a new study. One of those areas is capital markets, with an array of transactions closed or in the works.
Credit Union News
Credit Union News about Home-Equity Lending
A new report about loan-to-value ratios available on new home-equity lines of credit by state found just a sole financial institution that offers 100% LTV HELOCs nationally. The report’s author said many HELOC lenders are missing the boat.
While credit unions saw their production of opened-end home-secured credit lines tumble over the past year, originations were up on closed-end home-equity loans. Delinquency on home-equity credit lines was lower than on any other type of credit union loan except first mortgages.
By ROBERT DAVIS The total amount of loans secured by junior-liens at the nation’s credit unions has leapt by more than a third over the past year. But there are still some headwinds facing the industry.
A credit union based in the Pacific Northwest that has more than $2 billion in assets on its balance sheet is preparing for growth in its home-equity lending business.
By SAM GARCIA A proposed interagency rule on the use of automated valuation models would place an unnecessary burden on lenders and potentially lead to a lower utilization of AVMs or eliminate their use entirely, financial institutions are warning. The impact would be outsized for junior lien lenders.
Credit unions, which play a significant role in the home-equity market, are likely to see their lobbying muscle strengthen if a proposed merger of the sector’s two largest trade association goes through.
A newly released study on home-equity lending found that although new open-end activity is expected to dip this year, a surge is expected in closed-end originations — though both types are expected to strengthen in 2024. Equity positions on the loans continue to improve. Home-equity asset performance has gotten better, and home-secured credit lines have been the best performers.
An analysis of search results for ‘home equity’ phrases indicated that Figure Lending has joined an elite group of lenders who are among the top-10 results. Credit unions fell off the list, while lead generation websites bolstered their standings.
A credit union on the Northern California Coast is implementing a new loan origination system that will handle an anticipated increase in its retail and home-equity lending.