Trapped equity and the next mortgage opportunity
HousingWire brought leading housing economists and capital markets experts to Dallas for the Housing Economic Summit with one goal: translate charts and forecasts into what actually matters for professionals trying to close deals every day.
In this episode, John Toohig of Raymond James breaks down whole loan trading—the buying and selling of unsecuritized mortgages—and explains why understanding liquidity on the back end is now just as important as originating the loan itself. As originators adjust to life after the 2021–2022 refinance boom, John outlines where the real opportunities are today: HELOCs, second liens, ARMs, and purchase loans—especially in a market full of “trapped equity.”
He also explains why mortgage credit is historically clean (perhaps too clean), why banks are re-entering the ARM market, which loan types are hardest to sell in the secondary market, and what separates lenders who consistently move loans from those who struggle with due diligence.
For originators, capital markets teams, and executives navigating 2026, this episode turns macro signals into actionable insight.
Here’s a glimpse of what you’ll learn:
- Whole loan trades are faster and simpler than securitization
- HELOCs and second liens represent major opportunity amid trapped equity
- Banks are returning — especially in ARMs
- Credit is extremely “clean,” perhaps tighter than necessary
- Organized files and disciplined underwriting drive repeat investor demand
Related to this episode:
The Power House podcast brings the biggest names in housing to answer hard-hitting questions about industry trends, operational and growth strategy, and leadership. Join HousingWire’s Zeb Lowe every Thursday morning for candid conversations with industry leaders to learn how they’re differentiating themselves from the competition. Hosted and produced by the HousingWire Content Studio.
