Mortgage Rates Decline
The rate for a 30-year fixed-rate mortgage averaged 4.12 percent this week, down from last week’s rate of 4.19 percent, Freddie Mac said yesterday. At this time last year, the FRM rate averaged 4.23 percent--
ABA Daily Newsbytes
Home Equity Lending
Surges in U.S. to Five-Year High
Lenders increased their origination of home equity lines of credit by 21 percent in the 12 months ending in June, data firm RealtyTrac Inc. reports. The 797,865 Helocs given in the period represent the highest level since 2009. Bank of America and other lenders are providing more Helocs, often to their existing customers at reduced rates, as rising prices give them more equity in their homes. "This is an opportunity for the banks to offer an additional product to those homeowners they see as already well qualified and have that equity," says Daren Blomquist, vice president of RealtyTrac. "Helocs are a way for them to actually expand their mortgage businesses rather than have to cut back." BofA expanded its Heloc marketing efforts in 2013 with direct mailers, says Matt Potere, a home equity product executive at the lender. In June, the bank began offering interest-rate discounts on Helocs to customers if they have at least $20,000 in deposit or investment accounts. They get 0.13 percentage points off their rate, while those with $50,000 in accounts get a 0.25 percentage point discount.
From "Home Equity Lending Surges in U.S. to Five-Year High"
Bloomberg Business Week (10/09/14) Leondis, Alexis; Howley, Kathleen
Lenders increased their origination of home equity lines of credit by 21 percent in the 12 months ending in June, data firm RealtyTrac Inc. reports. The 797,865 Helocs given in the period represent the highest level since 2009. Bank of America and other lenders are providing more Helocs, often to their existing customers at reduced rates, as rising prices give them more equity in their homes. "This is an opportunity for the banks to offer an additional product to those homeowners they see as already well qualified and have that equity," says Daren Blomquist, vice president of RealtyTrac. "Helocs are a way for them to actually expand their mortgage businesses rather than have to cut back." BofA expanded its Heloc marketing efforts in 2013 with direct mailers, says Matt Potere, a home equity product executive at the lender. In June, the bank began offering interest-rate discounts on Helocs to customers if they have at least $20,000 in deposit or investment accounts. They get 0.13 percentage points off their rate, while those with $50,000 in accounts get a 0.25 percentage point discount.
From "Home Equity Lending Surges in U.S. to Five-Year High"
Bloomberg Business Week (10/09/14) Leondis, Alexis; Howley, Kathleen
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