Home Equity Lending Reemerges as Rates Increase


Row of colorful houses in neighborhood

By SingleSource | April 28, 2021

It has been a historic year for homeowners; record low mortgage rates throughout 2020 and the first quarter of 2021, coupled with increasing home prices has led to high homeowner equity. In fact, according to MBA’s chart of the week, homeowner’s equity was at a record high of $20.4 trillion in Q3 of 2020.1 The year-over-year increase was the largest average equity gain since 2012, and further increases are expected throughout 2021.

Since February 2021, interest rates have increased, and despite the temporary dip2 we expect the rates to continue increasing gradually during the near term, making today’s market attractive for many homeowners seeking a home equity loan or line of credit.

So, what happens if rates keep going up? For most borrowers, it does not make sense to refinance a loan at a higher interest rate when they can take a portion of that increased equity with a home equity loan. The COVID-19 pandemic coupled with the limited supply of homes on the market has more homeowners choosing to improve their current homes rather than going through the hassle of a home search during the current market – and has increasingly become a focus for many especially as work from home or a hybrid model has become the new normal.

The SingleSource Home Equity Lending Solutions

At SingleSource, we help our customers keep their fulfillment costs under budget. As a service provider here is how we try to assist:

We streamline home equity solutions that leverage real estate data, providing significant cost savings compared to traditional title and appraisal options.

  • Products like AVMs (automated valuation models) property condition inspections, and our nationwide online title abstracting capabilities allow us to provide products at a fraction of the cost of alternative options.

Integrated technology and enhanced online reporting capabilities also quickens turn times.

  • Many of our home equity products can be processed instantaneously or can be available within 1-3 business days.
  • Our new mobile application makes it easier for our vendors to report property condition inspections in the field.

SingleSource Home Equity Product Offerings

SingleSource Home Equity Title Services

Our centralized title production center provides a variety of home equity title solutions, from Title Commitments to Flood Certifications, document recordings, closings and even extensive warranty wrappers. We can perform whatever level of title search each lender wants – from a legal and vesting report all the way to full title insurance.

SingleSource provides title and settlement services in all 50 states and is licensed to provide title insurance in 37 jurisdictions including the District of Columbia. We are also in the process of becoming licensed in 3 additional states and territories. We maintain the ability to provide title insurance in the remaining states through strategic workshare partnerships with our title underwriters.

SingleSource Warranty Policy

SingleSource provides a blanket warranty policy for the following home equity title products: legal and vesting reports and current owner reports. The warranty policy is used to compensate economic damages incurred by a claimant for errors or omissions (E&O) resulting from title search services offered to the lender on home equity. The policy covers 1-4 unit residential family properties and E&O coverage can be offered up to $1 million per loan.

SingleSource Home Equity Valuation Services

Most home equity loans do not need a full appraisal to meet Interagency Appraisal and Evaluation Guidelines.  SingleSource provides a variety of alternative valuations to meet our customers’ risk-based valuation needs, including automated valuation models (AVM), property condition report inspections (PCR), desktop appraisals, and hybrid valuations. These valuation options offer greater confidence, lower prices and help you make your lending decisions as quickly as possible.

For more information on picking the right valuation product, check out our Risk Based Valuations blog to help you determine how to manage collateral risk with corresponding valuations products and to ensure you are receiving the most appropriate product for each circumstance, at a fee that balances speed and analysis with risk.

SingleSource is your one stop shop for home equity lending providing an end-to-end solution at the profitable price point.

Learn more about the SingleSource Home Equity Solutions.


  1. MBA: Chart of the Week – January 29, 2021 Home Equity and Home Prices https://www.mba.org/Documents/Chart%20of%20the%20Week%2001292021%20Final.pdf
  2. MReport: What is Disrupting the Steady Climb of Mortgage Rates? https://themreport.com/daily-dose/04-15-2021/what-is-disrupting-the-steady-climb-of-mortgage-rates

About SingleSource

SingleSource provides a comprehensive range of services that can be applied across the entire loan origination process and servicing cycle.

Our wide range of product and service offerings can be summarized by 5 main lines of business: Valuations, REO Asset Management, Field Services, Title and Settlement, and Document Management.

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