Home Equity Finance Study Reveals Growing Momentum in Originations, RMBS Issuance

Full year and fourth quarter activity reviewed

LAGUNA BEACH, Calif., May 19, 2025 /PRNewswire/ -- Home Equity Lending News (HELN), the leading source for breaking news and statistics exclusively about home-equity finance, released the Q4 2024 Home Equity Finance Study, which shows origination growth last year. In addition, banks tightened their HELOC standards, even as RMBS issuers eased their requirements amid a potential doubling of securitization volume.

The study highlights how traditional banks' long-standing dominance in the home-equity lending space has eroded.

"Although the HELOC market has historically been bank dominated and relatively insulated from competition, a growing list of non-bank HELOC lenders has clearly changed this paradigm over the last few years," HELN Director Vikram Gupta said. "Banks must proactively adapt if they intend to maintain competitive credibility within this increasingly dynamic segment."

HELOC and closed-end rates, yields and WACs have all tumbled as credit union yields fell furthest.

"Three years ago, I saw price compression at 100.50 to 101.50," HELN Director Ralph Armenta said. "Today, there is such a voracious appetite that I am seeing trades at the 105-106 handle, a 6-year life for both CES and HELOC, which are driving yield to around 8%. Time, patience, and investor demand have been kind to this asset."

Small financial institutions were responsible for a significant share of the growth in depository HELOC portfolios, while securitized loan performance improved, and internet searches for equity-sharing products outpaced lending products.

RMBS issuance continued to gain momentum.

HELN CEO Sam Garcia said, "So far in 2025, securitization volume has almost doubled compared to the same stretch last year. Given this accelerated start and the current deregulatory climate, it's conceivable that home-equity issuance could reach or even exceed 100 transactions for $35 billion by year-end."

The full Q4 2024 study is available to download for free at:
www.hel.news/second-mortgage-study/q4-2024/

About Home Equity Lending News
HELN is the leading source of breaking news and statistics exclusively about home-equity finance, including loan products and equity-sharing products. 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