Home equity market disparities signal untapped potential
Today’s conversation revolves around the glaring discrepancies in the U.S. home equity market. Mike Fratantoni, Ph.D., the Chief Economist of MBA, highlights the contrast between the outstanding home equity loans amounting to $500 billion and the total home equity that is roughly around $33 trillion across the U.S. This indicates a potential for second mortgages and Home Equity Lines of Credit (HELOCs).
Fratantoni dives deep into this disparity which could possibly stem from homeowners’ reluctance to tap into their equity or financial institutions’ hesitance in promoting such products. This brings up the urgent need for homeowners and financial institutions to reassess their approach towards home equity loans.
However, the current scenario sees a concerning decline in the availability of loans for potential buyers due to several factors. But despite these hurdles, there are some silver linings. The real estate experts suggest that it might be a good time to strategize, save for future investments and keep an eye out for beneficial reforms in the housing market norms.
On a brighter note, rates of FHA delinquencies have now exceeded pre-COVID-19 levels and foreclosure numbers remain significantly low.
Untapped potential in home equity market
Together with the successful distribution of vaccines, these developments shed a positive light on the overall economic revival.
On the technology front, Candor’s Expert System AI has made a significant impact by executing over 2 million flawless underwrites autonomously. The synergy between three essential components, Xpress, Xray, and Xpert, have substantially improved the company’s efficiency and accuracy in underwriting.
A newly launched platform promises to enhance user experience with unrivaled talent, restructured processes, and revamped essential tools. The platform aspires to make its partners’ journey extraordinary along with encouraging its partners to constantly innovate, learn from each other and foster mutual growth and success.
In addition to this, a glimmer of good news is that a record high was reached last month with steady growth nationwide in the financial sector. The senior management believes that the dedication and effort of its team is a driving force behind these milestones and they’re optimistic about future improvements.
Looking onwards, the company is market-ready for any fluctuations and has plans to innovate and expand its product portfolio to cater to evolving customer needs. They see a promising future fueled by relentless determination and a customer-centric approach. This company remarkably stands on the threshold of exciting possibilities and fruitful opportunities.