Prosper, a peer-to-peer lending platform, will inaugurate a new digital Home Equity Line of Credit product in 2019, working with banks to improve the application process and reduce the time from application to closing.

Banks will have the opportunity to increase their HELOC business because they will be gaining access to Prosper’s customer base, proprietary technology and marketing expertise. If projections are correct, the opportunity is large: An estimated 10 million consumers will take out HELOCs between 2018 and 2022, which would be more than double the number originated from 2012-2016, according to a study from Trans Union.

Applying for and obtaining a HELOC has often been a difficult and lengthy process for consumers.But customers on Proper will be able to complete an online application within minutes, receive an instant HELOC prequalification offer, and save weeks versus the traditional process. HELOCs originated through Prosper will have no origination fee and offer the same competitive rates as banks.

“We are taking advantage of our expertise in consumer credit and personal loans to build a product that removes the complexity and time-consuming barriers in applying for a HELOC,” said David Kimball, CEO, Prosper Marketplace. “For many of our customers, a HELOC could be a better choice for their financial needs and we’re thrilled to be working with our bank partners to render the traditional process obsolete with a new digital HELOC process that is simple, fast and painless.”

Synergy One Lending has agreed to acquire the assets of BBMC Mortgage, a national mortgage company.

BBMC offers a full suite of home financing products and services including traditional mortgage products and reverse mortgages through a wide network of loan officers, as well as direct sales channels.

“BBMC has built an impressive team and we are a strong cultural fit--with both firms committed to a relentless drive towards an exceptional customer experience through the combination of talent, technology, and digital marketing expertise,” said Terry Connealy, CEO of Synergy.

In addition to acquiring select assets and leases, Synergy One expects to transition most BBMC employees to the company, which is a wholly owned subsidiary of Mutual of Omaha Bank. The terms of the transaction were not disclosed.

“Synergy One and Mutual of Omaha Bank put their customers first, which aligns closely with BBMC’s culture and commitment to honesty, fair dealing and superior customer service,” said Jeff Gennarelli, president of BBMC Mortgage.

Citizens-Military Warriors Support Foundation Donate House to VA

Citizens Bank in collaboration with the Military Warriors Support Foundation will donate a just renovated, mortgage-free house to a deserving veteran and his family.

The Aldan, Pennsylvania home--renovated by Citizens Bank colleagues and donated by the bank--was presented today to Private First Class Michael Lowe, who honorably served his country as a combat engineer in Iraq and Korea.

Michael was inspired to join the Army in the aftermath of the terrorist attacks on New York City on September 11, 2001. He was born in Georgetown, Guyana, and raised in Brooklyn. He entered the Army in March 2003 and served until 2006 as a Private First-Class Combat Engineer serving in Korea and Iraq. Before retiring from the Army for medical reasons, Michael received several awards and commendations for his service including the Purple Heart.

“We are proud to honor Michael’s brave service by providing him with a home that has been refurbished with pride and great care,” said Brad Conner, vice chairman and head of consumer banking for Citizens Bank.

At a ceremony today, Citizens colleagues lined the street to welcome Michael and his family to their new home. Representatives from Citizens Bank and Military Warriors Support Foundation presented the keys to Michael and led him on a tour of his new home.

More than 100 Citizens Bank colleagues have donated their time volunteering on various projects to improve the house. Citizens Bank colleagues donated their time and talents, as well as items for the home (television, snow blower, gas grill, gardening tools, small kitchen appliances and silverware, living room, family room, and bedroom furniture) and gift cards for various stores in the area.

The next hot housing markets, believe it or not, are cities like Wilmington, Delaware.

Smaller, inland cities like Wilmington, Philadelphia and Atlanta lead a handful of metro areas where supply is shrinking, leaving more homes to go under contract within days, and for above-list price than a year ago, according to Redfin.

"Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers," said Claryssa McEnany, agent at Redfin. "Too many sellers are staying put. Buyers are motivated and want to move now but there just aren't enough homes available."

To identify the markets that are still heating up, Redfin ranked the top-25 metro areas with populations of at least 500,000 people, according to three indicators of a competitive seller's market:

• Decreased inventory of homes for sale.
• Increases in the share of homes going under contract within two weeks of their market debut.
• Increases in the share of homes selling for more than their list price.

Housing markets that are heating up the most (See Chart Below)

Contrast the numbers above with markets like Seattle, San Jose and Portland, where inventory has been increasing by double digits, and the shares of homes going under contract quickly is shrinking. Homes in the metro areas that are heating up are also considerably less expensive than not only the hot coastal markets, but also the national median price of about $300,000.

Plus, except for Atlanta and Philadelphia, all of the heating-up metro areas are smaller, with populations under 2 million. Atlanta is also a top migration destination, moving up from No. 5 among long-distance Redfin.com user searches in the third quarter of 2017 to No. 2 in the third quarter this year.

"Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers," said Claryssa McEnany, agent at Redfin. "Too many sellers are staying put. Buyers are motivated and want to move now but there just aren't enough homes available."

To identify the markets that are still heating up, Redfin ranked the top-25 metro areas with populations of at least 500,000 people, according to three indicators of a competitive seller's market:

• Decreased inventory of homes for sale.
• Increases in the share of homes going under contract within two weeks of their market debut.
• Increases in the share of homes selling for more than their list price.

Chart below shows the housing markets that are heating up the most

Contrast the numbers above with markets like Seattle, San Jose and Portland, where inventory has been increasing by double digits, and the shares of homes going under contract quickly is shrinking. Homes in the metro areas that are heating up are also considerably less expensive than not only the hot coastal markets, but also the national median price of about $300,000.

Plus, except for Atlanta and Philadelphia, all of the heating-up metro areas are smaller, with populations under 2 million. Atlanta is also a top migration destination, moving up from No. 5 among long-distance Redfin.com user searches in the third quarter of 2017 to No. 2 in the third quarter this year.

The value of homeowner equity has hit historic levels.

Almost 14.5 million properties were equity rich in the third quarter, an increase of 433,000 compared with the same period a year ago, the highest the statistic has been since the data first began being collected in the fourth quarter of 2013, according to the Q3 2018 U.S. Home Equity & Underwater Report from Attom Data Solutions.

A property is considered equity rich when the combined estimated amount of loans secured by the property was 50 percent, or less of the estimated market value of the property.

The 14.5 million equity rich properties in the third quarter represented 25.7 percent of all properties with a mortgage. That’s up from 24.9 percent in the previous quarter, though down from 26.4 percent in Q3 2017.

In addition, more than 4.9 million properties were considered seriously underwater. A property is seriously underwater when the combined estimated balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value. They decreased to 8.8 percent share of seriously, down from 9.3 percent in the previous quarter, but an increase from 8.7 percent in in the same period a year earlier.

“As homeowners stay put longer, they continue to build more equity in their homes despite the recent slowing in rates of home price appreciation,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “West coast markets along with New York have the highest share of equity rich homeowners. Markets in the Mississippi Valley and Rust Belt continue to have stubbornly high rates of seriously underwater homeowners when it comes to home equity.”

Highest seriously Underwater States

States with the highest share of seriously underwater properties were Louisiana (21.3 percent); Mississippi (16.2 percent); Iowa (15.5 percent); Arkansas (15.3 percent); and Illinois (15.1 percent).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (20.7 percent); Youngstown, Ohio (18.7 percent); New Orleans (18.6 percent); Scranton, Pennsylvania (18.3 percent); and Toledo, Ohio (17.7 percent).

Underforming  Zip Codes

Among 7,290 zip codes with at least 2,500 properties with mortgages, there were 26 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Detroit, Milwaukee, Saint Louis, Atlantic City and Cleveland metropolitan statistical areas.

The top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, New Jersey (71.0 percent seriously underwater); 63137 in Saint Louis, Missouri (66.5 percent); 60426 in Harvey, Illinois (64.2 percent); 38106 in Memphis, Tennessee (60.7 percent); and 44105 in Cleveland, Ohio (59.2 percent).

Top Performing States, MSAs

States with the highest share of equity rich properties were California (42.5 percent); Hawaii (39.4 percent); Washington (35.3 percent); New York (34.9 percent); and Oregon (33.6 percent).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose (73.9 percent); San Francisco (59.8 percent); Los Angeles (47.6 percent); Seattle (41.2 percent); and Honolulu (40.8 percent).

Outperforming Zip Codes

Among 7,290 zip codes with at least 2,500 properties with mortgages, there were 417 zip codes where more than half of all properties with a mortgage were equity rich.

The top five zip codes with the highest share of equity rich properties were all in the California Bay area: 94087 in Sunnyvale (87.1 percent equity rich); 94085 in Sunnyvale (86.7 percent equity rich); 94086 in Sunnyvale (86.7 percent equity rich); 94063 in Redwood City (85.9 percent equity rich); and 95130 in San Jose (85.7 percent equity rich).