Home Equity Lending: Taking Advantage of Newfound Wealth

Share

piggy bank and house image

August 8, 2022

Home prices aren’t the only thing increasing for homeowners in today’s market. Rising home equity is reaching new heights, with each quarter hitting new records nationwide. Total U.S. home equity increased almost 20% in the first quarter of 2022 to $27.8 trillion, a record high, according to the Federal Reserve. And according to ATTOM, almost half of the mortgaged homes in the U.S. were considered equity rich in Q2.

Bank earnings data shows home equity loans have more than doubled from 2021. Both banks and nonbank lenders are increasingly targeting the home equity space to meet the growing demand for home equity loans (HELs) and home equity lines of credit (HELOCs).

As rates continue to increase and home prices remain steep, today’s market has become increasingly attractive for many homeowners seeking a home equity loan or line of credit.

The SingleSource Home Equity Advantage

At SingleSource, we are celebrating 20 years of helping our home equity customers keep their fulfillment costs under budget. As a service provider here is how we 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 further quicken turn times.
    • Many of our home equity products can be processed instantaneously or can be available within 1-3 business days.
    • Our growing technology solutions and mobile applications make it easy for our vendors to report information from the field.

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, online closings, and 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. Coming soon, we will be launching a new title insurance alternative product at a fraction of the cost.

SingleSource provides title and settlement services in all 50 states and is licensed to provide title insurance in 36 jurisdictions including the District of Columbia. We maintain the ability to provide title insurance in the remaining states through strategic workshare partnerships with our title underwriters.

E&O Coverage and Borrower Fraud

SingleSource provides a blanket warranty policy for legal and vesting reports and current owner reports as part of its home equity services. From the search effective date, through the life of the loan, the coverage protects lenders and compensates economic damages incurred by a claimant for errors or omissions (E&O) resulting from SingleSource title search services offered to the lender. The policy also protects against borrower fraud. With fraudulent activity increasing across the mortgage industry, this may become a larger issue in the coming months and will provide a welcome security blanket to lenders.

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.

SingleSource is your one-stop provider for home equity lending, offering an end-to-end efficient solution at a profitable price point.

Learn more about SingleSource Home Equity Solutions.

About SingleSource

SingleSource merged with iMortgage Services, creating a comprehensive range of services that can be applied across the entire loan origination process and servicing cycle.

What’s New at SingleSource

Sign up for our Mailing List

LEARN MORE about how ouR team can work for you

Speak with a SingleSource team member to learn more about how our services are the right choice for you.