April 19, 2024
The Huntington National Bank bumped up home-equity originations from a year ago and improved credit scores in the process. The bank-holding company, however, reduced its open- and closed-end home-equity assets, and saw a 43-basis-point escalation in home-equity delinquency during the period -- though yields on the portfolio were up modestly.
April 19, 2024
Growth continued in Citizens Bank's home-equity portfolio, with a year-over-year improvement in the yield. Home-equity credit scores and delinquency, however, deteriorated from 12 months prior. Company-wide staffing has been reduced 6% during the past year, while branch count was cut by roughly 9%.
April 18, 2024
While home renovation activity is forecasted to continue its year-over-year decline through at least early next year, the projection for the current quarter was lifted -- resulting in an expected increase from the first quarter pace.
April 18, 2024
A new chatbot powered by artificial intelligence has been unveiled by Figure Technology Solutions Inc. for open-end loans. Lender users are prompted with possible solutions, while prospective borrowers receive support outside of regular business hours.
KeyBank has cumulatively cut its home-equity holdings by 10% during the past four quarters. Its investment banking business, however, generated record activity.
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.
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
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
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.
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...