LAGUNA BEACH, CA (May 19, 2025) |
Home Equity Lending News LLC (HELN), the leading source for breaking news and statistics exclusively about home-equity finance, released the Q4 2024 Home Equity Finance Study, which shows that origination growth gained measurable speed in the fourth quarter and is projected to escalate further throughout 2025. In addition, banks tightened their HELOC standards, even as issuers eased their requirements amid a potential doubling of securitization volume this year.
The study highlighted how traditional banks’ long-standing dominance in the home-equity lending space has eroded.
“Although the HELOC market has historically been bank dominated and relatively insulated from competition, a growing list of non-bank HELOC lenders has clearly changed this paradigm over the last few years,” HELN Director Vikram Gupta said. “Banks must proactively adapt if they intend to maintain competitive credibility within this increasingly dynamic segment.”
HELOC and closed-end interest rates, yields and weighted-average coupons have all tumbled as credit union yields fell furthest.
“Three years ago, I saw price compression at 100.50 to 101.50,” HELN Director Ralph Armenta said. “Today, there is such a voracious appetite that I am seeing trades at the 105-106 handle, a 6-year life for both CES and HELOC, which are driving yield to around 8%. Time, patience, and investor demand have been kind to this asset.”
Small financial institutions were responsible for a significant share of the growth in depository HELOC portfolios, while securitized loan performance improved, and internet searches for equity-sharing products outpaced queries for lending products.
RMBS issuance continued to gain momentum.
HELN CEO Sam Garcia said, “So far in 2025, securitization volume has almost doubled compared to the same stretch last year. Given this accelerated start and the influence of the current deregulatory climate, it’s conceivable that home-equity issuance could reach or even exceed 100 transactions for $35 billion by year-end.”
The full Q4 2024 study is available to download for free at:
https://www.hel.news/second-