The refinancing lender's loan would be recorded after the home-equity loan
. Assuming the situation above occurred after the refinance, and no subrogation was agreed upon, the home-equity lender would be paid in full and the refinancing lender would receive what was left, which would be less than if they were in a first position.
Thanks to home-equity recovery across the country and the prospect of increasing interest rates in the near future, home-equity loans
and home-equity lines of credit (HELOCs) are expected to experience a surge in demand on a scale not seen since, according to New York-based Fitch Ratings, new equity line originations peaked from 2004 to 2005.
Example 1: H takes out a home-equity loan
or lines of credit are logical products to promote to new mortgage holders.
Certainly, obtaining a home-equity loan
or line of credit has already become much more like applying for a full mortgage loan than in the past.
ACCORDING TO THE FEDERAL RESERVE Flow of Funds report in March of this year, outstanding home-equity loans
amounted to more than $1 trillion in 2003.
THE TEXAS LEGISLATURE HAS PASSED REFORMS to make home-equity loans
more flexible, affordable and advantageous for Texas consumers.
Fifty percent of customers who got a mortgage from a National City Bank loan originator in 2000 also purchased a home-equity loan
at the same time.
For mortgage-related ABS in January GMAC-RFC issued $1.9 billion in residential subprime mortgage securities through the company's RASC shelf (KS series); $800 million A-quality home-equity loan
securitizations, including high loan-to-value (HLTV), off its RFMSII shelf (HS and HI series); and $392 million of program exception product off its RAMP shelf (RS series).
Since November, First CU has beefed up applications for auto loans, personal loans, home loans, home-equity loans
and business loans through the promotion.
Schroder, Kurtz and Young assist clients with a wide range of residential loans, including purchases, new construction, FHA and VA loans, refinances and home-equity loans
According to Bloomberg, Bank of America Corp (NYSE: BAC) has said that it is expecting bigger losses on home-equity loans
than what it had previously estimated.