Home Equity Lending News

Home-equity issuance this year has been dominated by CES product, which has regularly been included in first-mortgage issuances. Some of those piggyback issuances have loans originated by A&D Mortgage LLC, which has entered a joint venture with Atlas Merchant Capital LLC to expand its securitizations. Atlas' David Schamis said, “The timing of this partnership could not be better." A&D's Max Slyusarchuk said, "Our JV partnership with Atlas will accelerate A&D’s growth." Verus issued a deal with CES in it. KBRA and Morningstar DBRS rated several of the home-equity transactions. Achieve closed a HELOC dea. Achieve's Kyle Enright said, "The successful close of this transaction comes at a pivotal time." Hometap closed an HEI issuance. Hometap's Jeffrey Glass said, "This broadly subscribed securitization demonstrates our continued capacity to create investment products that resonate with investors." Fix-and-flip activity remains strong. (subscription) https://lnkd.in/gHzTbjQU

Figure is now providing HELOCs that can be used as piggyback financing for home purchases. “Our growing number of lending partners made it clear they want to embed our new piggyback to better meet their customers’ needs,” Figure CEO Michael B. Tannenbaum said. https://lnkd.in/gmgNyMQS

Utilization of 2nd mortgages on FHA home purchase transactions has recently soared by more than 300 basis points, CoreLogic's Yanling Mayer wrote. Even the piggyback share for conventional loans has widened. https://lnkd.in/giaJTrcy

Data from America's Credit Unions indicate that although the number of credit unions in business has continued to diminish over this past year, membership inched up 1%, HELOC holdings grew by a fifth, and closed-end second lien assets expanded by 22%. https://lnkd.in/gR9bzfTa

The Mortgage Bankers Association's MBA Newslink published an article about Vikram Gupta's opinion piece for Home Equity Lending News about the future of bank HELOC dominance. https://lnkd.in/gE9pk3jr

A Q3 analysis by Home Equity Lending News of home-equity yields at publicly traded commercial banks indicated that the average yield on their home-equity portfolios was up 3 BPS from the preceding quarter and 28 BPS higher than a year earlier. Bank of America had the biggest increase, while KeyBank rose the least. https://lnkd.in/ggq4eA42

On Halloween, a HELOC RMBS issuance will close. More than two-thirds of the loans were originated by United Wholesale Mortgage LLC, though AmeriSave Mortgage Corporation, Lower and loanDepot also contributed units. Shellpoint Mortgage Servicing is the servicer, KBRA is rating the deal, and Goldman Sachs is the sole bookrunner and initial purchaser. (subscription) https://lnkd.in/ebPGFWAD

Financed homes with LTV ratios of no more than 50% accounted for a slimmer share of all financed residences in Q3 than a year earlier, which was in line with home prices, ATTOM reported. ATTOM's Rob Barber noted, "home equity keeps providing a significant boost to the economy." https://lnkd.in/gsJpguVm

Vikram Gupta writes about how big banks are losing the HELOC market to players like Figure and Spring EQ. While the HELOC market has historically been bank dominated and relatively insulated from competition, "growing list of non-bank HELOC lenders mentioned earlier has clearly changed this paradigm over the last few years and banks will need to respond if they want to remain credible in this space." https://lnkd.in/ghR3sngX

Demand for, and originations of, HELOCs has somewhat eased over the past two months, according to the Federal Reserve Board's latest Beige Book. https://lnkd.in/gUy4kRB3