Both Movement Mortgage and Homepoint introduced new, speed-focused home equity products as homeowners continue to seek out ways to access cash without compromising their mortgage rates.
Homepoint, a wholesale lender, launched a new, 100% digital HELOC in 38 states and Washington, D.C., available through its mortgage broker partners. The company said it will expand to more states within months.
Its HELOC requires “minimal uploading of income and asset documents” and, in some cases, may provide same-day approval and funding within five business days.
It lets borrowers access $20k to $400k of their home’s equity as a line of credit with either a 5-, 10-, 15-, or 30- year term and 2- to 5-year draw terms. They maintain at least 15% equity in their home.
“This new home equity line of credit is another way we’re aiming to position mortgage brokers at the forefront of consumers’ minds when it comes to home affordability and maximizing the value of their home,” said Phil Shoemaker, President of Originations at Homepoint.
“Brokers are more than their title indicates – they are truly capable of serving as stewards for stronger overall financial health. The Homepoint HELOC enables brokers to build stronger relationships within their communities by helping homeowners achieve their goals.”
At the same time, Movement Mortgage has partnered with Figure, the nation’s largest non-bank HELOC lender, to provide an all-digital equity loan with approval “in as few as five minutes”.
Funding is available in as few as five days.
Movement Mortgage will use Figure’s end-to-end digital platform to offer this product. They are using Provenance Blockchain to record and store the lending asset.
“We are thrilled to partner with Figure to provide our borrowers with easy access to the equity they’ve built,” said Caroline Payne, Movement’s SVP of capital markets.
“Figure’s seamless user experience, commitment to quality, and superior customer service align with Movement’s values and business goals. We look forward to working with Figure to help our borrowers reach their goals.”
Lenders are rushing to provide home equity products as they continue to gain popularity. Equity remains $5 trillion above pre-pandemic levels despite falling price appreciation, giving many homeowners borrowing options they’ve never had before. The number of new home equity lines of credit increased by 43% YOY in Q3.
A recent survey found that 29% of homeowners are considering tapping into their home equity despite high interest rates due to a lack of other financing options.