Morningstar DBRS created rating criteria for securitizations of home equity investments in mid-2023. Since then, issuance has blossomed, and the sky’s the limit, according to industry participants.

ABS backed by home equity investments are offering unlevered returns in the low double digits. The first rated HEI ABS was issued in October and industry players are anticipating exponential growth.

United Wholesale Mortgage faced a minor setback in its quest to have brokers account for 50% of mortgage originations. Both the retail and correspondent channels gained market share in the second quarter. (Includes six data tables.)

Rocket Mortgage is taking steps to boost its market share and production of purchase mortgages. That includes an effort to increase wholesale lending.

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.

Believing in its prowess as a servicing recapture expert, Rocket Mortgage is itching to buy MSR packages. In other M&A news, a distillery wants to enter the origination business. Think of the cross-selling opportunities!

Harris reiterates housing plan at debate; Trump vows to prohibit mortgages for undocumented residents; CFPB plans open banking rule for mortgages; Rocket to rebrand.

Mat Ishbia, president and CEO of UWM, said “retail competitors and large servicers are intensely working to solicit” borrowers who received their existing mortgages through brokers.

Buying a home is “roughly affordable again at the national level,” according to Zillow.

Currently, Dan Gilbert, Rocket’s chairman, owns about 93% of the company’s stock.