Debt consolidation has emerged as the dominant driver of home equity borrowing and a key theme that loan officers reported 81% of loan officers told HomeLight that they've seen a spike in homeowners borrowing against their equity, with 29% qualifying this as a significant increase and 52% calling it a slight increase. In 2025, 87% of loan officers told HomeLight that debt consolidation was the main reason borrowers accessed their equity through home equity lines of credit (HELOCs).
The expansion adds products including residential transition loans, construction and builder financing, multifamily lending, home equity lines of credit (HELOCs) and second-lien strategies. The investments will flow through CrossCountry Capital (CCC), a subsidiary launched in 2022 that currently manages $7 billion in loans. CCC's nonagency securitization program has attracted more than 50 institutional investors. Ron Leonhardt, who founded the Ohio-based CCM in 2003, said the asset management arm supports the company's origination business by allowing it to capitalize on the current market environment.
Fed Chair Jerome Powell hinted at potential rate cuts in September, which could lead to an increase in home renovation spending rather than a surge in home sales due to persistently high mortgage rates. The focus shifts to Home Equity Lines of Credit as they are influenced more directly by short-term rates and could see reduced costs, allowing homeowners to tap their equity for long-delayed renovations and improvements.