Tuesday, August 12, 2025
Issuance of residential mortgage-backed securities featuring loans that don't meet Qualified Mortgage requirements has sustained a vigorous pace -- with multiple outsized transactions closing and momentum carrying over from earlier in the year. Non-QM credit risk so far this quarter is moderately lower, and weighted-average coupons are holding steady.
Four newly finalized residential mortgage-backed securities transactions filled entirely with home-equity lines of credit have propelled year-to-date open-end securitization volume 69% above the comparable 2024 period, underscoring strong investor demand and a robust pace of issuance.
Rocket Mortgage LLC is set to price a junior-lien residential mortgage-backed securities transaction built on loans carrying moderately higher note rates and slightly stronger equity positions than contemporary closed-end second-lien issuances.
A powerful 166% year-over-year surge in home-equity originations was revealed by the parent of Better Mortgage Corp. as it capitalized on robust demand and simultaneously pared its quarterly loss.
An upcoming issuance of bonds backed by home-equity lines of credit originated by Achieve Home Loans features a low credit score and a high combined loan-to-value ratio that is offset by a high coupon and a low debt-to-income ratio.
An executive director has resigned from the board of Home Equity Lending News LLC to work with Wells Fargo & Co. One originator of home-equity investment contracts has announced a C-suite appointment, while another seeks to fill a C-suite vacancy tied to technology.
Spring EQ LLC originated the majority of closed-end second mortgages in a residential mortgage-backed securities deal slated to close later this month. The transaction is set to push 2025’s total home-equity bond issuance past the $15 billion mark. A subdued combined loan-to-value ratio on the issuance offsets a low weighted-average...
Investors in home-equity bonds are demonstrating a heightened willingness to take on risk, with combined loan-to-value ratios on new issuances edging higher over the last 12 months and home-equity lines of credit driving credit scores down and debt-to-income ratios up.
By COVIANCE Community home-equity lenders have a timely opportunity—but seizing it requires a more strategic approach. Success will come from moving beyond mass marketing, delivering personalized messaging, and simplifying the borrower experience.
By VISHAL GARG Part II of the American dream is leveraging homeownership to secure the most advantageous financing. Yet for many, equity extraction is hindered by a sluggish, often perplexing home-equity lending process and limited awareness of available products. That’s...
