By SUNDANCE BRENNAN Home-equity investments are gaining momentum and poised to increase market share in 2024 at an exponential rate. Key factors include several private securitizations, relatively high interest rates, and institutions seeing high returns. There is also a record high of $30 trillion-plus in unused equity available. However, origination structures are inconsistent, with no single blueprint for success and little to no oversight. Origination startups are viewing this as a gold rush, but just like the gold rush there are many new adventurers doing this for the first time. The solution to this issue is government guidance and the creation of an industry organization to represent HEi originators.
Opinions
Opinion: HEi Servicers Need to Step Up Lien, Valuation Monitoring
By ALLEN PRICE Home-equity investments have become one of the housing industry’s rising stars, thanks to rising home values and the growing number of homeowners seeking to tap into their home’s equity. Yet the future of HEi assets depends largely on whether or not they are serviced effectively and compliantly. To be more specific, without automated lien and valuation monitoring or the proper controls, the market is likely to run into trouble.
Opinion: Consider Key Regulatory Factors for Home Equity Lending
By COLGATE SELDEN While the mortgage market searches for solid ground, many lenders are exploring options that offer greater volume possibilities and benefits for their borrowers. Home-equity lines of credit allow borrowers to take advantage of equity in their homes at a lower cost than credit cards and unsecured loans. Before jumping in, however, lenders should consider the key regulatory differences between HELOCs and closed-end mortgages.
Opinion: HEIs a Good Option for Originators, Investors🔒
By MARK HANSON Investors and operators seeking lucrative opportunities face unique challenges in today’s real estate and finance market. Market volatility, low liquidity, strict credit policies, and the fact that the majority of homeowners feel locked in by their existing low-rate mortgages have contributed to a financial landscape where traditional products and investment channels can fall short. In the face of these challenges, home-equity investments have emerged as a transformative solution.
Opinion: Analyzing Best Title Options for Home Equity
By DAN BAILEY When evaluating vendors to help support home-equity loan transactions, it should be noted that one size definitely doesn’t fit all. Not only are home-equity transactions incredibly time-sensitive — with borrowers looking to access funds quickly for home repairs, improvements, and other immediate expenses — they are also highly cost-sensitive, with lenders picking up most if not all of the origination costs.
Opinion: HELOC Lenders Missing Big NOO Opportunities
By INDAR LANGE When it comes to home-equity lines of credit, real estate investors often strategize how to leverage one in order to enhance cash flow and support new projects. Although HELOCs are solemnly granted to investment properties, they can be instrumental in expanding opportunities for investors.
OPINION Refi-to-HEL Pivot is Pot of Gold
By SAM GARCIA As the memory of more refinances than anyone could handle fades into the distant past, some mortgage brokers, production executives and securitization players are pondering a new strategy. What many might not realize, however, is that they are sitting on a gold mine. In 2020 and 2021, mortgage originators generated around $4 trillion a […]
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