With mortgage rates, home values and consumer confidence all trending upward, consumers are once again tapping into their home equity. Lenders who want to capitalize on this trend must respond to changes in the home equity line of credit and home equity loan market, including demand for 24/7 digital lending options.
Wells Fargo will pay a $4 million penalty after an investigation by the New York Department of Financial Services found that a former affiliate of the bank falsified mortgage loan origination files, made loans to customers that were secured by an interest in the borrower’s home, and committed other infractions in violation of New York State law.
"While the share of borrowers that cashed-out some equity has increased considerably over the past year, the refinance volume has also fallen sharply," said Frank Nothaft, Freddie Mac vice president and chief economist.
More than 40 California organizations join with the California Reinvestment Coalition in calling on the Consumer Financial Protection Bureau to strengthen the Home Mortgage Disclosure Act through greater transparency.
As the wave of resets for home equity lines of credit continues to rise, many homeowners are left with higher monthly mortgage payments. But the industry is divided on the past and future problems that come with HELOCs.
With the housing market recovering and home prices steadily increasing, one mortgage product is looking more and more appealing to borrowers. And the demand might not stop there, with investors hoping to jump on the bandwagon too.
Layton has over 35 years of experience in financial services and as a corporate leader. He worked for nearly 30 years at JPMorgan Chase and its predecessors, starting as a trainee and rising to vice chairman and member of the three-person Office of the Chairman, retiring in 2004..
"The questions become, ‘Do the courts find a distinction between housing policy and lending, as in whether to make a loan and how you price that loan? Does the government get broader discretion than the private sector?’ ” Andreano said. “It’s not fleshed out.” Read More