April 17, 2024
An anecdotal barometer of economic conditions from the 12 Federal Reserve Banks indicate increased activity for open-end home-equity loans.
April 17, 2024
U.S. Bank, N.A., maintained year-over-year growth in its junior-lien home-equity portfolio, albeit minimal growth. Its first-lien home-equity investments, however, were 13% lower.
April 17, 2024
Home-equity asset quality has improved over the past year at Bank of America, N.A., with combined loan-to-value ratios decreasing and the average credit score rising. But lending volume has tumbled by 37% during the period. More recently, yields on the portfolio have fallen.
April 16, 2024
PNC Bank, N.A.'s, parent reported a reduction in its home-equity portfolio, a decline in company-wide staffing, and a modest downsizing of the bank branch network.
Freddie Mac is asking its regulator to allow it to begin purchasing closed-end second mortgages -- a move that it says will benefit borrowers and capital markets. While adding CES products could bring much-needed long-term liquidity to the home-equity capital markets, the primary trade association for mortgage-backed security stakeholders said the proposal represents "an unnecessary government encroachment."
Rook Capital, which provides home-equity investment products for new home purchases, has been acquired by an integrated real estate company.
Closed-end second mortgages included in an approaching Rocket Mortgage LLC issuance maintain the high quality underwriting seen in the lender's previous CES deals. As a result, the weighted-average gross coupon is around 78 basis points lower than the year-to-date weighted average yield for all CES deals.
April 16, 2024
Point Digital Finance Inc. has hired a seasoned capital markets executive to broaden its base of institutional investors for its home-equity investment products.
April 15, 2024
For the third time this year, a small number of closed-end second liens have been pooled with first mortgages for securitization. The latest deal involves mostly first liens with less than full documentation.
April 15, 2024
Second lien servicer ratings have been assigned to Fidelity National Financial's servicing subsidiary, which serviced nearly $700 million in closed-end second mortgages as of the end of last year.
April 12, 2024
An approval by the Federal Reserve for two New Jersey banks to merge cited the acquiring bank's competitive home-equity products for low-to-moderate communities as a positive factor in its decision.
April 12, 2024
Following a pandemic-era boom, home improvement activity has more recently slumped. But a new industry forecast calls for an increase in renovations this year and accelerating activity after that.
The HELN Newsletter
April 7, 2024
With high interest rates and soaring home prices, a new trend in mortgage lending has emerged: the resurgence of Home Equity Lines of Credit (HELOCs). Rather than risk a higher interest rate by refinancing a current property or moving to a new one altogether, many homeowners are choosing to enhance their current living spaces or focus on paying down debts. This shift in homeowner priorities has led to a significant increase in HELOC interest, offering both homeowners and lending companies valuable opportunities.
February 26, 2024
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...