At the Mortgage Bankers Association's conference, Toohig pointed out how homeowners with locked-in low mortgage rates hinder sales yet create an opportunity for HELOCs. He illustrated the common sentiment among homeowners about wanting to access home equity while discontent with their current properties. Panelist Julian Grey revealed that U.S. homeowners hold $17.6 trillion in equity, which could be significant for HELOCs. With lowering rates, the potential for these second-lien loans is prompting lenders to revive their offerings amidst growing competition from both traditional banks and fintech firms.
Toohig highlighted the opportunity for loan officers to originate more HELOCs, despite lower profits compared to first-lien mortgages, as homeowners seek to access their equity.
According to panelist Julian Grey, there is $17.6 trillion in equity among U.S. homeowners, with $11.5 trillion accessible, indicating a significant market for HELOCs.
Price noted that competition for borrowers is increasing, with traditional banks and fintech firms both aggressively targeting the lucrative HELOC market.
The sharp decline in HELOC rates since 2024 positions lenders to capitalize on the growing homeowner equity, creating extensive opportunity for second-lien offerings.
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