As home equity lending gains momentum among both traditional and non-bank lenders, so too does the competition to gain market share. In Part I of this two-part blog series, we reviewed how lenders can gain ground by reducing risk and decreasing costs for more efficient and profitable HELOC originations. For Part II, we’ll look at how to use data to increase marketing return on investment (ROI ..read more

Are HELOCs the new cash-out refis? Given the steep rise in interest rates and the sharp decline in refinance volume, HELOCs and other home equity products are now top of mind again at many banks, credit unions and fintech lenders. Nonbank lenders are also exploring these products, working in tandem with investors looking to create a secondary market for home equity. There’s no question that going forward HELOCs will be the product of choice when equity-rich consumers need liquidity. The better question is: Will our industry originate and market HELOCs the same way they did 10 or 15 years ago ..read more

It’s surprising how quickly times can change. In 2021, the mortgage industry set a new record for refinance volume: $2.3 trillion. But six months and three Fed-rate hikes later, the refinance market is rapidly shrinking and is now expected to close out 2022 down by two-thirds, according to a recent Mortgage Bankers Association forecast. The rapid decline of refinance lending is expected to usher in a return of home equity lending, a product category that for most of the last decade has been overshadowed by cash-out refinances ..read more

“Those who cannot remember the past are condemned to repeat it.” George Santa ..read more

Buying and financing a 2nd home or an investment property is getting more expensive, and historically when this has occurred it has increased the likelihood of occupancy fraud. The warning signs are all there: home price appreciation is at or near 40-year highs; mortgage interest rates are climbing, and in April the GSEs added new loan level price adjustments (LLPAs) for second home loans. The new adjustments can potentially add between 1.25% to as much as 4.125% to the cost for 2nd homes ..read more

We are thrilled to share that Senior Director of Product Management, Mortgage Analytics, Jennifer Menard, has been chosen as a winner of this year’s HousingWire 2021 Tech Trendsetters, an award honoring the most impactful and innovative technology leaders in the housing economy. HousingWire’s 2021 Tech Trendsetters award recognized 50 product and technology leaders who have been indispensable in bringing innovative tech solutions to market for housing industry clients. An expert in fraud and compliance technology, Jennifer has been responsible for the strategy, launch and wide-spread adoption ..read more

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Recently, Paul W. Harris, General Manager, Mortgage Analytics, appeared on PROGRESS in Lending’s Lending Buzz podcast to discuss some of the nuances in automating mortgage fraud detection and fraud for housing. Listen to the full podcast here or check out the conversation between Paul and Tony Garritano, below ..read more

A Possible Resurgence of Occupancy Fraud Second homes and investment properties are about to become harder to finance. When this happens, an increase in borrower misrepresentation—the nice way to say fraud—often follows. Add to the mix the growing exodus to suburbia and exurbia driven by the pandemic and the shift to work from home, now is probably a good time for originators to reassess the practices and tools they’re using to know what kind of loans they are really making ..read more

New Techniques and Technologies Needed to Address Purchase Fraud-for-Housing Risk First the good news: mortgage fraud, in all its forms, was down in 2020, as it has been much of the last decade. Now the not so good news: market dynamics, changing workforce demographics and more sophisticated fraud schemes, such as synthetic identity, all point to heightened risk for fraud, particularly fraud-for-housing, in the not-too-distant future. The ingredients are all there: the mortgage market is shifting from refinance (read low fraud risk) to purchase; low rates and tight inventory are pushing up a ..read more