It’s not every day that an expanded-credit specialist branches out into conventional funding. But that’s what A&D Mortgage is doing via its acquisition of Flagstar’s TPO unit.
There’s plenty of home equity available to homeowners but interest rates are constraining originations of home equity loans. Banks remained the top three originators of home equity loans in the third quarter. (Includes three data tables.)
HPS Investments, which owns nonprime originator/servicer Acra Lending and more, is toying with an IPO. Acra is a small part of what HPS owns, but it would open up the lender to public disclosures.
TD Bank plans to sell some of its jumbo mortgages and a correspondent business to free up asset space under a new cap set by the OCC. Wells Fargo, meanwhile, appears to be nearing a release from its cap.
It’s possible that some large lenders are offering 2025 conforming loan limits that are higher than where FHFA will set the limits. If that’s the case, there could be complications but no major concerns.
Borrower demand for home equity loans is expected to continue even as interest rates decline. Meanwhile, nonbank lenders are working to compete with depository institutions for the production.
Home equity investments allow homeowners to receive cash in exchange for a share in home price appreciation. Activity in the sector has grown to the extent that there was a conference dedicated to HEIs last week.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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