Home Equity Loans

Browse articles from all of our Newsletters related to Home Equity Loans.

January 9, 2015 - Inside FHA Lending

HECM Volume Declines Further in FY 2014

FHA reverse mortgage production fell during the first nine months of 2014 compared to same period in the prior year due to changes made by the agency to the Home Equity Conversion Mortgage program. The nine-month HECM volume stood at $10.1 billion as of Sept. 30, down 14.8 percent from the previous nine-month period in 2013, according to an Inside FHA Lending analysis of agency data. Volume also fell 9.8 percent on a quarter-to-quarter basis. HECM purchase loans accounted for 93.5 percent of the market while a large majority, 77.0 percent, appeared to favor adjustable-rate reverse mortgages over fixed-rate reverse mortgages. Limited maximum draws in the first year and reduction of principal limit factors – actions taken by HUD to improve the HECM program – significantly decreased the demand for HECM products compared with ... [ 1 chart ]


January 9, 2015 - Inside FHA Lending

FHA Borrowers Benefit from MHA Enhancements

FHA borrowers who refinance through the agency’s Home Affordable Modification Program will also be eligible to earn $5,000 in the sixth year of their performing, modified loan, subject to the Department of the Treasury’s guidelines, the FHA has announced. The incentive to FHA-HAMP borrowers is one of several enhancements to the Making Home Affordable program that the Department of Housing and Urban Development and the Treasury Department unveiled in December last year. The enhancements were designed to motivate homeowners in MHA to continue making timely mortgage payments, strengthen the safety net for those still facing financial hardships, and help them build equity in their homes. Under the revised HAMP guidelines, all homeowners in the program become eligible to earn $5,000 in the sixth year of their loan modification. This means a borrower’s outstanding principal balance could ...


January 9, 2015 - Inside Nonconforming Markets

Home-Equity Lending Expected to Increase

Bank and thrift holdings of home-equity loans continued to decline in the third quarter of 2014, according to the Inside Mortgage Finance Bank Mortgage Database. However, the two top banks increased their HEL holdings from midyear, and industry analysts expect home-equity lending to continue to increase in 2015. Banks and thrifts held a total of $991.27 billion in home-equity lines of credit, HELOC commitments and closed-end second liens as of the end of the third quarter of 2014, down 0.7 percent from the previous quarter and down 3.9 percent from the third quarter of 2013. Most of the top 10 bank and thrift HEL lenders saw...[Includes one data chart]


December 18, 2014 - Inside Mortgage Finance

Home-Equity Production Increased in 3Q14, But Not Enough to Offset Ongoing Decline in HEL Outstanding

Home-equity lending continued to grow during the third quarter of 2014 – in fact, it was the fastest-growing segment of the mortgage market – but depository institutions reported further declines in the unpaid balances of these assets on their balance sheets. Lenders funded an estimated $20 billion of new home-equity lines of credit during the third quarter, up 17.6 percent from the previous three-month period. That compared to a 9.8 percent increase in total mortgage originations during the period, and it was the best quarterly HEL production figure in five years, according to Inside Mortgage Finance estimates. Still, the supply of home-equity loans outstanding fell...[Includes three data charts]


Poll

The FHA is cutting its annual premium by 50 basis points. How much of a difference will this cut make in your FHA business?

Not much at all—maybe 10 percent at best.
Modestly. We expect a 10 percent to 25 percent gain in applications.
This is a real game changer, 25 percent or better.
Hard to say. This cut may just steal business away from the new Fannie/Freddie 97 LTV effort.

vote to see results
Housing Pulse