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.)

Despite a traditional slowing in loan locks in October, Optimal Blue found more demand for nonconforming and FHA loans.

HPS Investments, which owns nonprime originator/servicer Acra Lending and more, is toying with an IPO. Acra is a small part of what HPS owns, but it would open up the lender to public disclosures.

TD Bank plans to sell some of its jumbo mortgages and a correspondent business to free up asset space under a new cap set by the OCC. Wells Fargo, meanwhile, appears to be nearing a release from its cap.

It’s possible that some large lenders are offering 2025 conforming loan limits that are higher than where FHFA will set the limits. If that’s the case, there could be complications but no major concerns.

Borrower demand for home equity loans is expected to continue even as interest rates decline. Meanwhile, nonbank lenders are working to compete with depository institutions for the production.

Home equity investments allow homeowners to receive cash in exchange for a share in home price appreciation. Activity in the sector has grown to the extent that there was a conference dedicated to HEIs last week.

Second-quarter acquisitions increased at the government-sponsored enterprises, but profits remained stable as credit reserves shifted.

Investors are increasingly turning to the mortgage market to fund their home purchases rather than paying all cash.

The Treasury Department announced $100 million in affordable housing funding, while HUD named recipients of its Pathways to Removing Obstacles to Housing grant competition.