Broker, Home Equity, Verification, M&A Data; Legal Issue Conference; Non-Agency Product News

Sometimes you and your teammates have different priorities. I head to Dallas tomorrow for a private mortgage event, where the priorities will probably be mostly aligned. Besides the election, and perhaps the inflation-beating Costco’s Thanksgiving meal, the profitability of HELOCs, 2nd mortgages, and equity products in general will definitely be a discussion topic. In the past much of this product (85 percent by some estimates) was held by banks. Now that is estimated to be down to 65 percent, and non-banks of all shapes and sizes are coming on strong, market-share-wise. Besides having decent margins, some will say these products are the best recapture tool today. While this is going on, the adjustable-rate market is still… a jumble? (Remember the saying, popular with some, “Date the rate, marry the house.”?) Borrowers with 3-1, 5-1, 7-1s that are adjusting are in for a rude awakening, simultaneously leading to LOs having to explain rates but also potentially leading to a lead source for nimble originators. (Today’s podcast can be found here. This week’s ‘casts are presented by FirstClose, which helps financial institutions grow a successful home equity business with innovative solutions that minimize application drop-off, automate time-consuming processes, and reduce time to close from weeks to days. Today’s has an interview with Keynova’s Beth Robertson on growing competition and innovation in digital home equity lending, emphasizing faster applications, real-time prequalification, transparent pricing, and streamlined, personalized customer experiences as key differentiators for lenders.)