Equity Lending Faces Mixed Future

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Posted To: MND NewsWire

A new study by the Mortgage Bankers Association (MBA) looks at lending and servicing of home equity lines of credit (HELOCs) and closed-end home equity loans (HE Loans.) The study finds that lenders see the current demand for equity lending to be mixed between loan types and doesn’t anticipate a lot of improvement in HELOC lending in the mid-term. Both home equity loan debt and borrower utilization rates declined last year. Marina Walsh, MBA’s Vice President of Industry Analysis says, “Many households are not tapping the equity in their homes, despite the significant rise in home equity since the Great Recession, wage growth, and low unemployment. Our study found that lenders do not anticipate a significant ramp-up in activity through 2020 because of various challenges, including other viable…(read more)

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