"EquitySelect, debuted in September as a first-lien home equity loan that 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 ultimately repaid when the home is sold or through a final balloon payment that will not exceed the property's value."
"CEO and President David Peskin told HousingWire that the second-lien product is aimed at equity-rich borrowers whose cash flow does not fit traditional underwriting models and who want payment flexibility without refinancing their first lien. Today, a large number of borrowers are getting declined, Peskin said, adding that as many as 40% of borrowers between 40 and 60 years old and 60% over 60 are denied a second lien by a financial institution."
HighTechLending launched a second-lien version of EquitySelect to let homeowners access equity without refinancing a first mortgage. The first-lien EquitySelect allowed monthly payments as low as 1% of the annualized loan balance, with unpaid interest added to principal and repaid at sale or via a final balloon payment capped at property value. The new second-lien product targets equity-rich borrowers with variable or nontraditional income—such as self-employed, commission earners, or fixed-income retirees—who are often denied second liens. Both lien versions are available through HighTechLending’s wholesale platform to brokers, nondelegated lenders, banks, and credit unions. Qualification emphasizes cash-flow-driven payment flexibility over fixed amortization.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]