Home Equity Lending Study

MBA's Home Equity Lending Study includes benchmarking data - volume, utilization rates, operational metrics, and growth expectations - related to lending and servicing open-ended Home Equity Lines of Credit (HELOCs) and closed-end Home Equity Loans (HE Loans).

Our second annual study was conducted in Spring of 2020, based on data through 2019. MBA collected data from 29 member companies - including large banks, community banks, credit unions, and independent mortgage companies - representing $62.3 billion in originations volume for 2019, $495.9 billion in maximum credit extended to borrowers as of December 31, 2019, and $227.7 billion in outstanding borrowings as of December 31, 2019. 

A summary publication is available for purchase, and includes key findings and charts from the 2020 Home Equity Lending Study. The following charts are included: 

  • ECONOMIC OVERVIEW:
    • Owners' Equity in Real Estate and Home Equity Debt Outstanding
    • Residential Investment
    • Home Price Appreciation
    • Consumer Spending
    • Personal Savings Rate
    • Cash-Out Share and the 30-Year Fixed Rate
    • Rate History and Forecast
    • Benchmark Rates for Home Equity Lending

  • STUDY HIGHLIGHTS:
    • Highlights
    • Challenges
    • Initiatives

  • OPERATING STRUCTURES:
    • Which Area Manages the HELOC/HE Loan Originations Business?
    • Loan Origination Systems
    • Which Area Manages the HELOC/HE Loan Servicing Business?
    • Loan Servicing Systems

  • COMMITMENTS (ORIGINATIONS):
    • HELOC and HE Loan Commitment Volume by New Account vs. Renewal/Refinance
    • Total Commitment Volume by First Contact with Borrower
    • Total Commitment Volume by Borrower Usage
    • Total Commitment Volume by Valuation Method
    • Loan-to-Value Ratios
    • Average FICO Scores
    • Pull-Through Rates
    • Processing Times

  • HELOC UTILIZATION:
    • HELOC Utilization Rates (Outstandings/Commitments) for Recent Vintage Years
    • HELOC Utilization Rates (Total Outstandings/Commitments) for Total Commitments
    • HELOC Account Status
    • Zero-Balance HELOC Accounts by Contractual Commitment Limit
    • Maximum-Funded HELOC Accounts by Contractual Commitment Limit

  • HELOC AND HE LOAN OUTSTANDINGS: FINANCING TERMS AND PERFORMANCE:
    • HELOC and HE Loan Outstandings: % Change from Beginning of Year to Year-End
    • HELOC Servicing Portfolio Mix
    • Index for HELOC Variable Rate Adjustments
    • HELOC Contractual Commitment Limits
    • HELOC Contractual Total Term
    • HELOC and HE Loan: Average Life from Origination to Payoff
    • HELOC and HE Loan: Delinquency and Foreclosure Rates

  • GROWTH EXPECTATIONS:
    • HELOC and HE Loan Commitments: Growth Expectations
    • HELOC and HE Loan Outstandings: Growth Expectations

If your company originates and/or services HELOCs or HE loans and would like to participate in the 2021 study, or if you have questions on ordering the summary publication, contact homeequity@mba.org or call 202-557-2916.

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