"EquitySelect allows borrowers to set monthly payments as low as 1% of their annualized loan balance, subject to a cap. Any unpaid interest is added to the loan balance and repaid when the home is sold or through a final balloon payment that will not exceed the property's value. The second-lien version enables homeowners to access home equity without disturbing their existing first mortgage."
"Equity-rich homeowners were often being declined due to one-size-fits-all underwriting, Donaldson said in a statement. Yslas added that he's seen thousands of loans declined over the years under traditional underwriting frameworks, despite significant home equity and a borrower's ability to repay. According to them, EquitySelect aligns underwriting with real-world borrower cash-flow profiles, while maintaining disciplined credit standards. The product is distributed HighTechLending's wholesale platform, which includes brokers, nondelegated lenders, banks and credit union"
HighTechLending launched EquitySelect, a flexible home equity line of credit product. Borrowers can set monthly payments as low as 1% of the annualized loan balance, subject to a cap. Any unpaid interest is added to the loan balance and repaid when the home is sold or via a final balloon payment that will not exceed the property's value. A second-lien version lets homeowners access equity without disturbing existing first mortgages. Underwriting aligns with borrower cash-flow profiles while maintaining disciplined credit standards. The product is distributed through HighTechLending's wholesale platform to brokers, nondelegated lenders, banks, and credit unions. The company is expanding support across distribution channels.
Read at www.housingwire.com
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