Capital Markets Robust, HELOC Volume Up in Q2 2024 Home Equity Study

Press Releases | 2024 Press Releases

FirstClose, LoanCare and Covius sponsor in-depth review of Q2 home-equity originations, capital markets and servicing

LAGUNA BEACH, Calif., Aug. 19, 2024 /PRNewswire/ -- Home Equity Lending News LLC (HELN), the leading source for breaking news and statistics exclusively about home-equity finance, has published the Q2 2024 Home Equity Study sponsored by FirstClose Inc., a leading fintech provider of data and workflow solutions for mortgage and home equity lenders nationwide. Quarterly HELOC originations turned higher after several consecutive quarterly declines, while capital markets conditions are robust.

This timely study was generously co-sponsored by LoanCare, a top U.S. mortgage subservicer, and Covius, a leading provider of technology-enabled solutions to the financial services industry.

FirstClose CEO Tedd Smith said, "The home equity market represents a pivotal opportunity for homeowners and lenders, alike. With the right technology and processes in place, lenders can unlock value and drive more efficient, transparent transactions, ultimately empowering homeowners to better leverage their home equity for their financial goals."

After three consecutive quarters of slowing, HELOC production turned higher — though lending levels pale compared to available equity. Rocket's home equity production doubled, and Better's business was up by three quarters. A stream of new CES, HELOC and HEi products emerged.

"While some leaders are indicating that CES and HELOC lending will accelerate this year, all eyes are on the Fed and its response to upcoming economic reports," HELN Executive Board Member Ralph Armenta said.

Home-equity RMBS issuance reached a recent record, with dollar volume on HELOC deals more than doubling, and both CES and HEi transaction count tripling. One insider noted that excess capital in the market has helped to stimulate securitizations.

Armenta added, "Industry players are reporting that home equity capital markets are frothy, and investor demand far outpaces the supply from originators."

The report also covered the acquisition of two HEi players, Freddie Mac's pilot CES program and a deep dive into interest rates and WACs.

Access the full 43-page study here.

About Home Equity Lending News
HELN is the leading source of breaking news and statistics exclusively about home-equity products – including closed-end second liens (CES), home-equity lines of credit (HELOC) and home-equity investment contracts (HEi). Our editorial team writes for home-equity originators, servicers, investors and other stakeholders. HELN was founded in 2022 by its CEO, Sam Garcia. Read more about home-equity lending online at www.HEL.News.

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SOURCE Home Equity Lending News