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.)

Growth in securitizations of home equity loans slowed in the third quarter from an exponential pace earlier in the year. Still, issuance was up, with Rocket leading the way. (Includes two data tables.)

Splitero expands to Arizona; A&D Mortgage launches free CRM; Achieve updates terms on HELOC product.

Arc’s new HELOC product is a fully digital offering that can lead to loan funding in less than five days.

Refi promotion at A&D and DSCR expansion; Hometap brings new HEI securitization; Aclara Lending enters the non-QM lender space.

Carlyle agreed to purchase up to $300 million of equity-sharing home loans originated through a new program from Unison.

Improved underwriting and consumer resiliency makes DoubleLine bullish on the consumer ABS market moving forward.

The biggest increases in home equity lending this year have been seen at nonbanks. Rocket Mortgage more than doubled its originations of closed-end second liens in the first half of 2024 from a year ago. (Includes three data charts.)