Home Equity Lending Study
In This Section
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.