Alaya Linton, Andrew Pentis and Katie Lowery wrote for CNN about getting a HELOC on an investment property. The story noted, "In the second quarter of 2024, the average rate on a HELOC from a traditional bank was 8.57%, while the average HELOC rate at credit unions was 8.45%, according to an August 2024 Home Equity Lending News (HELN) study." FirstClose, Covius and LoanCare sponsored the study. https://lnkd.in/gUFYEPE3
Home Equity Lending News
Internet News
Laguna Beach, California 2,778 followers
News/data about jr lien & home-equity products including HELs, HELOCs, equity sharing, purchase 2nds & renovation loans.
About us
Home Equity Lending News LLC is the leading source of breaking news & statistics exclusively about home-equity and junior-lien products - including home-equity loans, home-equity lines of credit, home equity investments, purchase-money seconds, and home-improvement loans. Our coverage caters to retail lenders, third-party originators, correspondent investors, securitization players, servicers, attorneys, and other home-equity stakeholders. Frequently covered home-equity topics include market metrics and forecasts, RMBS issuance, and technology updates as well as equity-sharing products. We also analyze and report on quarterly earnings data for home-equity originations, outstandings and performance by individual company. In addition to reporting daily news, HELN collects and curates statistics it reports in its Statistics Tables and categorizes home-equity firms it reports on in its Companies Tables that include home-equity lenders, servicers and service providers. Our free daily reports are available via personal computers, mobile devices and email, and the news is delivered through an intuitive platform that enables readers to experience a distraction-free deep dive into the inner workings of second-mortgage lending. HELN was founded in 2022 by its CEO, Sam Garcia, a mortgage media pioneer and former mortgage banker who originated his first HEL shortly after high school. In 1998, Garcia founded Mortgage Daily, the mortgage industry’s first-ever online-only news publication, where he served as publisher until its sale in 2021. That excellent experience helps him in leading HELN today.
- Website
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http://www.HEL.News
External link for Home Equity Lending News
- Industry
- Internet News
- Company size
- 11-50 employees
- Headquarters
- Laguna Beach, California
- Type
- Privately Held
- Founded
- 2022
- Specialties
- mortgage, home equity, HEL, HELOC, 2nd mortgage, junior lien, origination, servicing, statistics, RMBS, newsletter, news, technology, advertising, HEI, shared equity, capital markets, equity sharing, and HEi
Locations
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Primary
580 Broadway St
206C
Laguna Beach, California 92651, US
Employees at Home Equity Lending News
Updates
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As home prices have soared in California, so have closed-end home-equity originations. In fact, among all the top metropolitan areas for home-equity lending this year, a majority are in the Golden State — a sharp reversal from last year. “In general, markets with the largest home price growth over the past few years were among those with the biggest year-over-year gains in home equity loan activity,” CoreLogic's Archana Pradhan wrote in the report. https://lnkd.in/dufai8Vn
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On a linked-quarter basis, interest rates on closed-end home equity loans owned by the nation’s banks moved higher, the NATIONAL CREDIT UNION ADMIN reported. But on closed-end product that is on the balance sheets of credit unions, rates retreated. https://lnkd.in/g67F--uP
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A planned CES RMBS issuance this month includes loans originated by Newrez LLC, PENNYMAC and Nationstar Mortgage. KBRA is rating the deal. https://lnkd.in/ghWPj2mc
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An upcoming Figure HELOC securitization includes some 1st-lien HELOCs. The WAC is the lowest for a Figure deal since June 2023. Morningstar DBRS is rating the deal. https://lnkd.in/ggW9B5eE
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A new credit facility from Kawa Capital Management will help Nada Inc. double originations and beef up its real estate platform for individual investors. COO John R Green said, "This partnership not only empowers us to meet the growing demand for home-equity agreements but also ensures that our Cityfunds platform can expand its ability to offer individual investors access to the HEA asset class." CEO Tore C. Steen said, "With the addition of this capital infusion through this new credit facility into Cityfunds, Nada will almost double its quarterly originations." (subscription) https://lnkd.in/g9kWmNqF
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Quotes from Q2 2024 Home Equity Study sponsored by FirstClose, LoanCare and Covius https://lnkd.in/g2jrH3Tn Figure's Todd Stevens: “If we tripled our production, we still couldn’t quench the full demand that we have for our product.” Saluda Grade's Roger Ashworth said home-equity originations could rise as a result of Federal Reserve rate cuts over the next six to 12 months in conjunction with other fundamentals. Harvard Joint Center for Housing Studies' Carlos Martin: “Economic uncertainty and continued weakness in home sales and the sale of building materials are keeping a lid on residential remodeling, although many drivers of spending are starting to firm up again.” FirstClose' Tedd Smith: “The home equity market represents a pivotal opportunity for homeowners and lenders, alike." Covius' Pete Pannes: “Homeowners with historically low first mortgages are getting comfortable using home equity products if they need to tap their equity." LoanCare's Dave Vida: “As the market changes and products continue to evolve, servicers must stay up-to-date on the latest technology solutions available to support their clients’ needs.” ICE's Andy Walden noting that home-equity extraction became more expensive for homeowners as the Fed raised short-term lending rates. Home Equity Lending News' Ralph Armenta said of Fed rate cuts, “I believe the second lien market could see in total as much as a 30% overall drop in originations.” Point's @Jordan Fox said of HEI: “We’re really in a gray zone with a lot of areas.” Better's Vishal Garg said,"“While we believe it is likely the purchase and refinance markets may continue to remain challenging in the near term, we are seeing increased demand from homeowners looking to tap into their home equity." Plaza Home Mortgage, Inc.'s Mike Fontaine said the rise in popularity of home-equity products is catching the attention of government regulators. Button Finance's Jason Harris: “We’re closing about $25 million a month right now. I would like to be at $100 million a month by the end of the year.” https://lnkd.in/g2jrH3Tn
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Steven Rappoport writes HEI is a mutually beneficial product for today’s market. That was the consensus among leaders in the space gathered last month at the Information Management Network (IMN)'s forum in Austin, Texas. Splitero's Michael Gifford said, “We’ve achieved product market fit on both sides." Home.LLC's Nikhaar Shah said, “For anybody who is house rich and cash poor, this is perfect solution.” Jeboah Joerg of EasyKnock predicted HEIs will ultimately be used as a “down payment assistance tool.” Morningstar DBRS' Derek Moran, CFA said, “The features of not having payments and things is pretty attractive." David J. Dunn of Kingsbridge Investment Partners acknowledged the business has risk, but it's one worth taking. https://lnkd.in/gUHWrJWM
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Capital Markets Headlines for CES, HELOCs, HEi The latest quarterly analysis of home-equity RMBS issuance found that closed-end second lien securitizations nearly tripled over the past year as HELOC issuance was up far more modestly. At the same time, CES WACs declined 34 BPS while HELOC WACs escalated 38 BPS. Meanwhile, including CFMT 2024-R1 LLC, Home Equity Lending News has tracked 50 home-equity issuances so far during 2024 including 31 CES deals, 13 HELOC RMBS and 6 HEi issuances. ACHM Trust 2024-HE2 has a whopping WAC of 13.16%. Interviews with DC insiders, including a former FHFA director, found that the Freddie Mac's CES pilot program is likely to be scrutinized quite differently by Harris and Trump administrations. A new fund is being launched to connect property owners with private second-lien investors in order to finance real estate repairs. A new revolving warehouse facility will finance continued HEi origination growth at Unlock. It’s the third new warehouse line during the past year for the HEi provider. Read All Home Equity Capital Markets Headlines https://lnkd.in/gphqSCJf View Home Equity RMBS Issuance by Transaction https://lnkd.in/gZWY4RRh Tables With Home Equity RMBS Issuance by Year (# & $) https://lnkd.in/gJabrbdf
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Quarterly home-equity complaints filed with the Consumer Financial Protection Bureau about Shellpoint Partners LLC skyrocketed as borrowers were primarily frustrated with trouble during the payment process. Overall complaints in the industry, however, held steady. https://lnkd.in/gMwDaZCX