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.)

loanDepot introduces first-lien HELOC; MFA promotes co-chief investment officer; Calque expands buy-before-you-sell product suite.

The Fourth Circuit has ruled that the Truth in Lending Act’s offset provision covers home equity lines of credit accessed via a credit card.

HELOCs can fall under the definition of a "credit card plan"  included in the Truth in Lending Act's offset provision, according to the appeals court.

Former Freddie CEO Don Layton said the pilot’s only connection to housing is that some of the homeowner’s equity is used as collateral for the new second.

Non-agency securitization involving home equity increased by 39.3% in the second quarter even as some big players pulled back. Issuers that weren’t active in the first quarter helped fill the void. (Includes two data tables.)

Supporters of the program say the expanded use of second mortgages is a less costly way for homeowners to access their home equity when interest rates are high. But they worry about the pilot’s restrictions.

It remains a challenge to finance accessory dwelling units through traditional mortgage products. A new financing option from an ADU builder looks to overcome that challenge.

Innovation and concerns are arising in the home equity lending space as home values increase.

Figure believes its new HELOC marketplace can be a “game changer” for originators.