The subservicing solution is designed to manage the unique challenges of servicing home equity lines of credit.

The amount of available home equity ticked down during the fourth quarter and lenders saw a fall in demand from homeowners for home equity loans. Still, for the full year, home equity lending increased by 10.8%. (Includes three data tables.)

Fed reduces redemption cap for Treasury securities, allows agency MBS runoff to proceed; Annaly to issue securitization with HELOCs; non-agency MBS term financing transaction from PIMCO.

The investment in the Figure Connect loan marketplace will be used for the purchase of non-agency assets.

Issuance of both closed-end second liens and home equity lines of credit declined in the fourth quarter. For the full year, securitization of home equity loans dwarfed 2023. (Includes two data tables.)

KBRA forecasts that non-agency securitizations of HELOCs and CES loans will increase next year.

JPMorgan Chase started marketing a variety of non-agency MBS over the past two weeks, including its first deal stocked with non-QMs for primary residences.

Rising home equity and strong investor demand should help lenders boost their HELOC, CES and HEI lending in 2025.

While delinquencies are rising across most securitized asset classes, that’s not the case for home equity loans.

There’s plenty of home equity available to homeowners but interest rates are constraining originations of home equity loans. Banks remained the top three originators of home equity loans in the third quarter. (Includes three data tables.)